ALLE Iron Condor Strategy
ALLE (Allegion plc), in the Industrials sector, (Security & Protection Services industry), listed on NYSE.
Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door closers, controls, and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors and door systems; and other accessories. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands. It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, on-line and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.
ALLE (Allegion plc) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $11.23B, a trailing P/E of 17.75, a beta of 0.90 versus the broader market, a 52-week range of 130.07-183.11, average daily share volume of 1.0M, a public-listing history dating back to 2013, approximately 14K full-time employees. These structural characteristics shape how ALLE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places ALLE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ALLE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on ALLE?
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 ALLE snapshot
As of May 15, 2026, spot at $126.11, ATM IV 27.50%, IV rank 3.12%, expected move 7.88%. The iron condor on ALLE 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 ALLE specifically: ALLE IV at 27.50% is on the cheap side of its 1-year range, which means a premium-selling ALLE iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.88% (roughly $9.94 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 ALLE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALLE should anchor to the underlying notional of $126.11 per share and to the trader's directional view on ALLE stock.
ALLE iron condor setup
The ALLE 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 ALLE near $126.11, 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 ALLE 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 ALLE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $130.00 | $3.35 |
| Buy 1 | Call | $140.00 | $0.98 |
| Sell 1 | Put | $120.00 | $1.53 |
| Buy 1 | Put | $115.00 | $0.68 |
ALLE iron condor risk and reward
- Net Premium / Debit
- +$322.50
- Max Profit (per contract)
- $322.50
- Max Loss (per contract)
- -$677.50
- Breakeven(s)
- $116.78, $133.23
- Risk / Reward Ratio
- 0.476
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.
ALLE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ALLE. 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% | -$177.50 |
| $27.89 | -77.9% | -$177.50 |
| $55.78 | -55.8% | -$177.50 |
| $83.66 | -33.7% | -$177.50 |
| $111.54 | -11.6% | -$177.50 |
| $139.42 | +10.6% | -$619.76 |
| $167.31 | +32.7% | -$677.50 |
| $195.19 | +54.8% | -$677.50 |
| $223.07 | +76.9% | -$677.50 |
| $250.95 | +99.0% | -$677.50 |
When traders use iron condor on ALLE
Iron condors on ALLE are a delta-neutral premium-collection structure that profits if ALLE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ALLE thesis for this iron condor
The market-implied 1-standard-deviation range for ALLE extends from approximately $116.17 on the downside to $136.05 on the upside. A ALLE iron condor is a delta-neutral premium-collection structure that pays off when ALLE 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 ALLE IV rank near 3.12% 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 ALLE at 27.50%. As a Industrials name, ALLE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALLE-specific events.
ALLE 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. ALLE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALLE alongside the broader basket even when ALLE-specific fundamentals are unchanged. Short-premium structures like a iron condor on ALLE carry tail risk when realized volatility exceeds the implied move; review historical ALLE earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALLE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ALLE?
- A iron condor on ALLE is the iron condor strategy applied to ALLE (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 ALLE stock trading near $126.11, the strikes shown on this page are snapped to the nearest listed ALLE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALLE 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 ALLE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $322.50 per contract and the computed maximum loss is -$677.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALLE iron condor?
- The breakeven for the ALLE iron condor priced on this page is roughly $116.78 and $133.23 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 ALLE market-implied 1-standard-deviation expected move is approximately 7.88%; 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 ALLE?
- Iron condors on ALLE are a delta-neutral premium-collection structure that profits if ALLE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ALLE implied volatility affect this iron condor?
- ALLE ATM IV is at 27.50% with IV rank near 3.12%, 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.