AQN Iron Condor Strategy
AQN (Algonquin Power & Utilities Corp.), in the Utilities sector, (Diversified Utilities industry), listed on NYSE.
Algonquin Power & Utilities Corp. operates in the power and utility industries. It owns and operates a portfolio of regulated electric, water distribution and wastewater collection, and natural gas utility systems and transmission operations. As of December 31, 2025, it operated a portfolio of regulated utility systems in the United States, Canada, Bermuda, and Chile, serving approximately 1,272,000 customer connections. Its regulated electrical distribution utility systems and related transmission and generation assets are located in the states of Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, and Oklahoma, as well as in Bermuda with approximately 311,000 electric customer connections. Its regulated water distribution and wastewater utility systems are located in the states of Arizona, Arkansas, California, Illinois, Missouri, New York, and Texas, as well as in Chile with approximately 583,000 customer connections. It’s regulated natural gas distribution utility systems are located in the states of Georgia, Illinois, Iowa, Massachusetts, Missouri, New Hampshire, and New York; and in the Canadian province of New Brunswick with approximately 378,000 natural gas customer connections.
AQN (Algonquin Power & Utilities Corp.) trades in the Utilities sector, specifically Diversified Utilities, with a market capitalization of approximately $4.63B, a trailing P/E of 27.39, a beta of 0.90 versus the broader market, a 52-week range of 5.32-7.11, average daily share volume of 4.3M, a public-listing history dating back to 2009, approximately 3K full-time employees. These structural characteristics shape how AQN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places AQN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AQN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on AQN?
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 AQN snapshot
As of June 29, 2026, spot at $5.97, ATM IV 21.50%, IV rank 10.31%, expected move 6.16%. The iron condor on AQN 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 18-day expiry.
Why this iron condor structure on AQN specifically: AQN IV at 21.50% is on the cheap side of its 1-year range, which means a premium-selling AQN iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.16% (roughly $0.37 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AQN expiries trade a higher absolute premium for lower per-day decay. Position sizing on AQN should anchor to the underlying notional of $5.97 per share and to the trader's directional view on AQN stock.
AQN iron condor setup
The AQN 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 AQN near $5.97, the first option leg uses a $6.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AQN chain at a 18-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 AQN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $6.27 | N/A |
| Buy 1 | Call | $6.57 | N/A |
| Sell 1 | Put | $5.67 | N/A |
| Buy 1 | Put | $5.37 | N/A |
AQN 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.
AQN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AQN. 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 AQN
Iron condors on AQN are a delta-neutral premium-collection structure that profits if AQN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AQN thesis for this iron condor
The market-implied 1-standard-deviation range for AQN extends from approximately $5.60 on the downside to $6.34 on the upside. A AQN iron condor is a delta-neutral premium-collection structure that pays off when AQN 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 AQN IV rank near 10.31% 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 AQN at 21.50%. As a Utilities name, AQN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AQN-specific events.
AQN 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. AQN positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AQN alongside the broader basket even when AQN-specific fundamentals are unchanged. Short-premium structures like a iron condor on AQN carry tail risk when realized volatility exceeds the implied move; review historical AQN earnings reactions and macro stress periods before sizing. Always rebuild the position from current AQN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AQN?
- A iron condor on AQN is the iron condor strategy applied to AQN (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 AQN stock trading near $5.97, the strikes shown on this page are snapped to the nearest listed AQN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AQN 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 AQN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 21.50%), 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 AQN iron condor?
- The breakeven for the AQN 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 AQN market-implied 1-standard-deviation expected move is approximately 6.16%; 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 AQN?
- Iron condors on AQN are a delta-neutral premium-collection structure that profits if AQN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AQN implied volatility affect this iron condor?
- AQN ATM IV is at 21.50% with IV rank near 10.31%, 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.