How are XOP iron condor max profit and max loss calculated?

Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the XOP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 32.71%), the computed maximum profit is $264.50 per contract and the computed maximum loss is -$585.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XOP iron condor?

The breakeven for the XOP iron condor priced on this page is roughly $162.36 and $185.15 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current XOP market-implied 1-standard-deviation expected move is approximately 9.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XOP implied volatility affect this iron condor?

XOP ATM IV is at 32.71% with IV rank near 52.50%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

XOP Iron Condor Strategy

XOP (State Street SPDR S&P Oil & Gas Exploration & Production ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Oil & Gas Exploration & Production ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Oil & Gas Exploration & Production Select Industry Index (the "Index")Seeks to provide exposure the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & MarketingSeeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

XOP (State Street SPDR S&P Oil & Gas Exploration & Production ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.55B, a beta of 0.05 versus the broader market, a 52-week range of 118.14-190.36, average daily share volume of 5.1M, a public-listing history dating back to 2006. These structural characteristics shape how XOP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.05 indicates XOP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. XOP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on XOP?

An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.

Current XOP snapshot

As of May 15, 2026, spot at $173.95, ATM IV 32.71%, IV rank 52.50%, expected move 9.38%. The iron condor on XOP below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this iron condor structure on XOP specifically: XOP IV at 32.71% is mid-range versus its 1-year history, so the credit collected on a XOP iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.38% (roughly $16.31 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on XOP should anchor to the underlying notional of $173.95 per share and to the trader's directional view on XOP etf.

XOP iron condor setup

The XOP iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With XOP near $173.95, the first option leg uses a $182.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XOP chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 XOP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$182.50	$2.82
Buy 1	Call	$191.00	$1.48
Sell 1	Put	$165.00	$2.78
Buy 1	Put	$157.00	$1.48

XOP iron condor risk and reward

Net Premium / Debit: +$264.50
Max Profit (per contract): $264.50
Max Loss (per contract): -$585.50
Breakeven(s): $162.36, $185.15
Risk / Reward Ratio: 0.452

Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.

XOP iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on XOP. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$535.50
$38.47	-77.9%	-$535.50
$76.93	-55.8%	-$535.50
$115.39	-33.7%	-$535.50
$153.85	-11.6%	-$535.50
$192.31	+10.6%	-$585.50
$230.77	+32.7%	-$585.50
$269.23	+54.8%	-$585.50
$307.69	+76.9%	-$585.50
$346.15	+99.0%	-$585.50

When traders use iron condor on XOP

Iron condors on XOP are a delta-neutral premium-collection structure that profits if XOP etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

XOP thesis for this iron condor

The market-implied 1-standard-deviation range for XOP extends from approximately $157.64 on the downside to $190.26 on the upside. A XOP iron condor is a delta-neutral premium-collection structure that pays off when XOP stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current XOP IV rank near 52.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on XOP should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XOP-specific events.

XOP iron condor positions are structurally neutral / range-bound; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. XOP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XOP alongside the broader basket even when XOP-specific fundamentals are unchanged. Short-premium structures like a iron condor on XOP carry tail risk when realized volatility exceeds the implied move; review historical XOP earnings reactions and macro stress periods before sizing. Always rebuild the position from current XOP chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on XOP?: A iron condor on XOP is the iron condor strategy applied to XOP (etf). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With XOP etf trading near $173.95, the strikes shown on this page are snapped to the nearest listed XOP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XOP iron condor max profit and max loss calculated?: Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the XOP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 32.71%), the computed maximum profit is $264.50 per contract and the computed maximum loss is -$585.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XOP iron condor?: The breakeven for the XOP iron condor priced on this page is roughly $162.36 and $185.15 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current XOP market-implied 1-standard-deviation expected move is approximately 9.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a iron condor on XOP?: Iron condors on XOP are a delta-neutral premium-collection structure that profits if XOP etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current XOP implied volatility affect this iron condor?: XOP ATM IV is at 32.71% with IV rank near 52.50%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.