ALRS Iron Condor Strategy
ALRS (Alerus Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The company operates in four segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services.
ALRS (Alerus Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $668.7M, a trailing P/E of 24.94, a beta of 0.69 versus the broader market, a 52-week range of 20.26-27.6, average daily share volume of 144K, a public-listing history dating back to 2003, approximately 846 full-time employees. These structural characteristics shape how ALRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.69 indicates ALRS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ALRS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on ALRS?
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 ALRS snapshot
As of May 15, 2026, spot at $26.54, ATM IV 23.00%, IV rank 2.03%, expected move 6.59%. The iron condor on ALRS 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 ALRS specifically: ALRS IV at 23.00% is on the cheap side of its 1-year range, which means a premium-selling ALRS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.59% (roughly $1.75 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 ALRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALRS should anchor to the underlying notional of $26.54 per share and to the trader's directional view on ALRS stock.
ALRS iron condor setup
The ALRS 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 ALRS near $26.54, the first option leg uses a $27.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALRS 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 ALRS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $27.87 | N/A |
| Buy 1 | Call | $29.19 | N/A |
| Sell 1 | Put | $25.21 | N/A |
| Buy 1 | Put | $23.89 | N/A |
ALRS iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ALRS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ALRS. 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.
When traders use iron condor on ALRS
Iron condors on ALRS are a delta-neutral premium-collection structure that profits if ALRS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ALRS thesis for this iron condor
The market-implied 1-standard-deviation range for ALRS extends from approximately $24.79 on the downside to $28.29 on the upside. A ALRS iron condor is a delta-neutral premium-collection structure that pays off when ALRS 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 ALRS IV rank near 2.03% 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 ALRS at 23.00%. As a Financial Services name, ALRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALRS-specific events.
ALRS 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. ALRS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALRS alongside the broader basket even when ALRS-specific fundamentals are unchanged. Short-premium structures like a iron condor on ALRS carry tail risk when realized volatility exceeds the implied move; review historical ALRS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALRS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ALRS?
- A iron condor on ALRS is the iron condor strategy applied to ALRS (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 ALRS stock trading near $26.54, the strikes shown on this page are snapped to the nearest listed ALRS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALRS 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 ALRS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALRS iron condor?
- The breakeven for the ALRS iron condor priced on this page is no defined breakeven on the modeled curve 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 ALRS market-implied 1-standard-deviation expected move is approximately 6.59%; 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 ALRS?
- Iron condors on ALRS are a delta-neutral premium-collection structure that profits if ALRS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ALRS implied volatility affect this iron condor?
- ALRS ATM IV is at 23.00% with IV rank near 2.03%, 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.