AGCO Iron Condor Strategy
AGCO (AGCO Corporation), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets.
AGCO (AGCO Corporation) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $8.40B, a trailing P/E of 10.90, a beta of 1.12 versus the broader market, a 52-week range of 95.96-143.78, average daily share volume of 729K, a public-listing history dating back to 1992, approximately 24K full-time employees. These structural characteristics shape how AGCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places AGCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.90 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AGCO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on AGCO?
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 AGCO snapshot
As of May 15, 2026, spot at $113.68, ATM IV 37.40%, IV rank 38.53%, expected move 10.72%. The iron condor on AGCO 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 AGCO specifically: AGCO IV at 37.40% is mid-range versus its 1-year history, so the credit collected on a AGCO iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.72% (roughly $12.19 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 AGCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGCO should anchor to the underlying notional of $113.68 per share and to the trader's directional view on AGCO stock.
AGCO iron condor setup
The AGCO 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 AGCO near $113.68, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGCO 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 AGCO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $120.00 | $2.88 |
| Buy 1 | Call | $125.00 | $1.55 |
| Sell 1 | Put | $110.00 | $3.55 |
| Buy 1 | Put | $100.00 | $1.68 |
AGCO iron condor risk and reward
- Net Premium / Debit
- +$320.00
- Max Profit (per contract)
- $320.00
- Max Loss (per contract)
- -$680.00
- Breakeven(s)
- $106.80, $123.20
- Risk / Reward Ratio
- 0.471
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.
AGCO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AGCO. 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% | -$680.00 |
| $25.14 | -77.9% | -$680.00 |
| $50.28 | -55.8% | -$680.00 |
| $75.41 | -33.7% | -$680.00 |
| $100.55 | -11.6% | -$625.33 |
| $125.68 | +10.6% | -$180.00 |
| $150.82 | +32.7% | -$180.00 |
| $175.95 | +54.8% | -$180.00 |
| $201.08 | +76.9% | -$180.00 |
| $226.22 | +99.0% | -$180.00 |
When traders use iron condor on AGCO
Iron condors on AGCO are a delta-neutral premium-collection structure that profits if AGCO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AGCO thesis for this iron condor
The market-implied 1-standard-deviation range for AGCO extends from approximately $101.49 on the downside to $125.87 on the upside. A AGCO iron condor is a delta-neutral premium-collection structure that pays off when AGCO 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 AGCO IV rank near 38.53% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on AGCO should anchor more to the directional view and the expected-move geometry. As a Industrials name, AGCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGCO-specific events.
AGCO 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. AGCO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGCO alongside the broader basket even when AGCO-specific fundamentals are unchanged. Short-premium structures like a iron condor on AGCO carry tail risk when realized volatility exceeds the implied move; review historical AGCO earnings reactions and macro stress periods before sizing. Always rebuild the position from current AGCO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AGCO?
- A iron condor on AGCO is the iron condor strategy applied to AGCO (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 AGCO stock trading near $113.68, the strikes shown on this page are snapped to the nearest listed AGCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGCO 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 AGCO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 37.40%), the computed maximum profit is $320.00 per contract and the computed maximum loss is -$680.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGCO iron condor?
- The breakeven for the AGCO iron condor priced on this page is roughly $106.80 and $123.20 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 AGCO market-implied 1-standard-deviation expected move is approximately 10.72%; 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 AGCO?
- Iron condors on AGCO are a delta-neutral premium-collection structure that profits if AGCO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AGCO implied volatility affect this iron condor?
- AGCO ATM IV is at 37.40% with IV rank near 38.53%, 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.