AEM Iron Condor Strategy
AEM (Agnico Eagle Mines Limited), in the Basic Materials sector, (Gold industry), listed on NYSE.
Agnico Eagle Mines Limited is engaged in the discovery, growth, and operation of mineral sites across Canada, Mexico, and Finland. The company organizes its business into Northern and Southern segments. Primarily, it focuses on the extraction and sale of gold, while also exploring for deposits of silver, zinc, and copper. Its principal asset is the LaRonde mine, located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2021, the LaRonde mine reported proven and probable gold reserves totaling approximately 3.0 million ounces. Additionally, the company conducts exploration efforts in various international regions, including Europe, Latin America, and the United States.
AEM (Agnico Eagle Mines Limited) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $93.77B, a trailing P/E of 15.93, a beta of 0.62 versus the broader market, a 52-week range of 130.04-255.24, average daily share volume of 2.6M, a public-listing history dating back to 1972, approximately 10K full-time employees. These structural characteristics shape how AEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates AEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on AEM?
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.
AEM snapshot
As of August 14, 2026, spot at $186.28, ATM IV 42.73%, IV rank 46.39%, expected move 12.25%. The iron condor on AEM below is built from the August 14, 2026 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 AEM specifically: AEM IV at 42.73% is mid-range versus its 1-year history, so the credit collected on a AEM iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.25% (roughly $22.82 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 AEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEM should anchor to the underlying notional of $186.28 per share and to the trader's directional view on AEM stock.
AEM iron condor setup
The AEM iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AEM at $186.28 on that close, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEM 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 AEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $195.00 | $5.60 |
| Buy 1 | Call | $205.00 | $3.15 |
| Sell 1 | Put | $175.00 | $3.75 |
| Buy 1 | Put | $170.00 | $2.40 |
AEM iron condor risk and reward
- Net Premium / Debit
- +$380.00
- Max Profit (per contract)
- $380.00
- Max Loss (per contract)
- -$620.00
- Breakeven(s)
- $171.20, $198.80
- Risk / Reward Ratio
- 0.613
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.
AEM iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AEM. 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% | -$120.00 |
| $41.20 | -77.9% | -$120.00 |
| $82.38 | -55.8% | -$120.00 |
| $123.57 | -33.7% | -$120.00 |
| $164.76 | -11.6% | -$120.00 |
| $205.94 | +10.6% | -$620.00 |
| $247.13 | +32.7% | -$620.00 |
| $288.32 | +54.8% | -$620.00 |
| $329.50 | +76.9% | -$620.00 |
| $370.69 | +99.0% | -$620.00 |
When traders use iron condor on AEM
Iron condors on AEM are a delta-neutral premium-collection structure that profits if AEM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AEM thesis for this iron condor
The market-implied 1-standard-deviation range for AEM extends from approximately $163.46 on the downside to $209.10 on the upside. A AEM iron condor is a delta-neutral premium-collection structure that pays off when AEM 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 AEM IV rank near 46.39% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on AEM should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, AEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEM-specific events.
AEM 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. AEM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AEM alongside the broader basket even when AEM-specific fundamentals are unchanged. Short-premium structures like a iron condor on AEM carry tail risk when realized volatility exceeds the implied move; review historical AEM earnings reactions and macro stress periods before sizing. Always rebuild the position from current AEM chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AEM?
- A iron condor on AEM is the iron condor strategy applied to AEM (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 AEM stock at $186.28 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AEM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AEM 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 AEM iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.73%), the computed maximum profit is $380.00 per contract and the computed maximum loss is -$620.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AEM iron condor?
- The breakeven for the AEM iron condor priced on this page is roughly $171.20 and $198.80 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AEM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.25%; 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 AEM?
- Iron condors on AEM are a delta-neutral premium-collection structure that profits if AEM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AEM implied volatility affect this iron condor?
- AEM ATM IV is at 42.73% with IV rank near 46.39%, 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.