ACA Iron Condor Strategy
ACA (Arcosa, Inc.), in the Industrials sector, (Industrial - Infrastructure Operations industry), listed on NYSE.
Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, and transportation markets in North America. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and trench shields and shoring products for residential and non-residential construction, agriculture, specialty building products, as well as for infrastructure related projects. The Engineered Structures segment provides utility structures, wind towers, traffic and lighting structures, telecommunication structures, storage and distribution tanks for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets, as well as for gas and liquids storage and transportation for residential, commercial, energy, agriculture, and industrial markets. The Transportation Products segment offers inland barges; fiberglass barge covers, winches, and other components; cast components for industrial and mining sectors; and axles, circular forgings, coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.
ACA (Arcosa, Inc.) trades in the Industrials sector, specifically Industrial - Infrastructure Operations, with a market capitalization of approximately $6.33B, a trailing P/E of 28.37, a beta of 1.08 versus the broader market, a 52-week range of 81.91-135.58, average daily share volume of 337K, a public-listing history dating back to 2018, approximately 6K full-time employees. These structural characteristics shape how ACA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places ACA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ACA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on ACA?
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 ACA snapshot
As of May 15, 2026, spot at $124.17, ATM IV 33.00%, IV rank 3.43%, expected move 9.46%. The iron condor on ACA 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 34-day expiry.
Why this iron condor structure on ACA specifically: ACA IV at 33.00% is on the cheap side of its 1-year range, which means a premium-selling ACA iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.46% (roughly $11.75 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ACA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACA should anchor to the underlying notional of $124.17 per share and to the trader's directional view on ACA stock.
ACA iron condor setup
The ACA 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 ACA near $124.17, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACA chain at a 34-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 ACA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $130.00 | $3.03 |
| Buy 1 | Call | $135.00 | $1.75 |
| Sell 1 | Put | $120.00 | $3.03 |
| Buy 1 | Put | $110.00 | $0.93 |
ACA iron condor risk and reward
- Net Premium / Debit
- +$337.50
- Max Profit (per contract)
- $337.50
- Max Loss (per contract)
- -$662.50
- Breakeven(s)
- $116.63, $133.38
- Risk / Reward Ratio
- 0.509
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.
ACA iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ACA. 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% | -$662.50 |
| $27.46 | -77.9% | -$662.50 |
| $54.92 | -55.8% | -$662.50 |
| $82.37 | -33.7% | -$662.50 |
| $109.82 | -11.6% | -$662.50 |
| $137.28 | +10.6% | -$162.50 |
| $164.73 | +32.7% | -$162.50 |
| $192.18 | +54.8% | -$162.50 |
| $219.64 | +76.9% | -$162.50 |
| $247.09 | +99.0% | -$162.50 |
When traders use iron condor on ACA
Iron condors on ACA are a delta-neutral premium-collection structure that profits if ACA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ACA thesis for this iron condor
The market-implied 1-standard-deviation range for ACA extends from approximately $112.42 on the downside to $135.92 on the upside. A ACA iron condor is a delta-neutral premium-collection structure that pays off when ACA 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 ACA IV rank near 3.43% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ACA at 33.00%. As a Industrials name, ACA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACA-specific events.
ACA 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. ACA positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACA alongside the broader basket even when ACA-specific fundamentals are unchanged. Short-premium structures like a iron condor on ACA carry tail risk when realized volatility exceeds the implied move; review historical ACA earnings reactions and macro stress periods before sizing. Always rebuild the position from current ACA chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ACA?
- A iron condor on ACA is the iron condor strategy applied to ACA (stock). 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 ACA stock trading near $124.17, the strikes shown on this page are snapped to the nearest listed ACA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACA 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 ACA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $337.50 per contract and the computed maximum loss is -$662.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ACA iron condor?
- The breakeven for the ACA iron condor priced on this page is roughly $116.63 and $133.38 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 ACA market-implied 1-standard-deviation expected move is approximately 9.46%; 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 ACA?
- Iron condors on ACA are a delta-neutral premium-collection structure that profits if ACA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ACA implied volatility affect this iron condor?
- ACA ATM IV is at 33.00% with IV rank near 3.43%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.