ALSN Iron Condor Strategy
ALSN (Allison Transmission Holdings, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium-and heavy-duty commercial vehicles, and medium-and heavy-tactical U.S. defense vehicles worldwide. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. It also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc.
ALSN (Allison Transmission Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $10.16B, a trailing P/E of 18.96, a beta of 1.01 versus the broader market, a 52-week range of 76.01-137.62, average daily share volume of 888K, a public-listing history dating back to 2012, approximately 4K full-time employees. These structural characteristics shape how ALSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places ALSN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ALSN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on ALSN?
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 ALSN snapshot
As of May 15, 2026, spot at $117.19, ATM IV 33.60%, IV rank 34.84%, expected move 9.63%. The iron condor on ALSN 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 ALSN specifically: ALSN IV at 33.60% is mid-range versus its 1-year history, so the credit collected on a ALSN iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $11.29 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 ALSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALSN should anchor to the underlying notional of $117.19 per share and to the trader's directional view on ALSN stock.
ALSN iron condor setup
The ALSN 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 ALSN near $117.19, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALSN 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 ALSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $125.00 | $2.33 |
| Buy 1 | Call | $130.00 | $1.08 |
| Sell 1 | Put | $110.00 | $1.88 |
| Buy 1 | Put | $105.00 | $1.03 |
ALSN iron condor risk and reward
- Net Premium / Debit
- +$209.50
- Max Profit (per contract)
- $209.50
- Max Loss (per contract)
- -$290.50
- Breakeven(s)
- $107.91, $127.10
- Risk / Reward Ratio
- 0.721
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.
ALSN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ALSN. 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% | -$290.50 |
| $25.92 | -77.9% | -$290.50 |
| $51.83 | -55.8% | -$290.50 |
| $77.74 | -33.7% | -$290.50 |
| $103.65 | -11.6% | -$290.50 |
| $129.56 | +10.6% | -$246.63 |
| $155.47 | +32.7% | -$290.50 |
| $181.38 | +54.8% | -$290.50 |
| $207.29 | +76.9% | -$290.50 |
| $233.20 | +99.0% | -$290.50 |
When traders use iron condor on ALSN
Iron condors on ALSN are a delta-neutral premium-collection structure that profits if ALSN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ALSN thesis for this iron condor
The market-implied 1-standard-deviation range for ALSN extends from approximately $105.90 on the downside to $128.48 on the upside. A ALSN iron condor is a delta-neutral premium-collection structure that pays off when ALSN 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 ALSN IV rank near 34.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on ALSN should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, ALSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALSN-specific events.
ALSN 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. ALSN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALSN alongside the broader basket even when ALSN-specific fundamentals are unchanged. Short-premium structures like a iron condor on ALSN carry tail risk when realized volatility exceeds the implied move; review historical ALSN earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALSN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ALSN?
- A iron condor on ALSN is the iron condor strategy applied to ALSN (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 ALSN stock trading near $117.19, the strikes shown on this page are snapped to the nearest listed ALSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALSN 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 ALSN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $209.50 per contract and the computed maximum loss is -$290.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALSN iron condor?
- The breakeven for the ALSN iron condor priced on this page is roughly $107.91 and $127.10 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 ALSN market-implied 1-standard-deviation expected move is approximately 9.63%; 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 ALSN?
- Iron condors on ALSN are a delta-neutral premium-collection structure that profits if ALSN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ALSN implied volatility affect this iron condor?
- ALSN ATM IV is at 33.60% with IV rank near 34.84%, 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.