AVA Iron Condor Strategy
AVA (Avista Corporation), in the Utilities sector, (Diversified Utilities industry), listed on NYSE.
Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services to 17,400 customers in the city and borough of Juneau, Alaska. The company generates electricity through hydroelectric, thermal, and wind facilities.
AVA (Avista Corporation) trades in the Utilities sector, specifically Diversified Utilities, with a market capitalization of approximately $3.37B, a trailing P/E of 16.30, a beta of 0.23 versus the broader market, a 52-week range of 35.5-43.5, average daily share volume of 621K, a public-listing history dating back to 1981, approximately 2K full-time employees. These structural characteristics shape how AVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.23 indicates AVA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on AVA?
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 AVA snapshot
As of May 15, 2026, spot at $40.40, ATM IV 16.10%, IV rank 1.41%, expected move 4.62%. The iron condor on AVA 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 AVA specifically: AVA IV at 16.10% is on the cheap side of its 1-year range, which means a premium-selling AVA iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.62% (roughly $1.86 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 AVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVA should anchor to the underlying notional of $40.40 per share and to the trader's directional view on AVA stock.
AVA iron condor setup
The AVA 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 AVA near $40.40, the first option leg uses a $42.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVA 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 AVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $42.42 | N/A |
| Buy 1 | Call | $44.44 | N/A |
| Sell 1 | Put | $38.38 | N/A |
| Buy 1 | Put | $36.36 | N/A |
AVA 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.
AVA iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AVA. 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 AVA
Iron condors on AVA are a delta-neutral premium-collection structure that profits if AVA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AVA thesis for this iron condor
The market-implied 1-standard-deviation range for AVA extends from approximately $38.54 on the downside to $42.26 on the upside. A AVA iron condor is a delta-neutral premium-collection structure that pays off when AVA 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 AVA IV rank near 1.41% 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 AVA at 16.10%. As a Utilities name, AVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVA-specific events.
AVA 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. AVA positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVA alongside the broader basket even when AVA-specific fundamentals are unchanged. Short-premium structures like a iron condor on AVA carry tail risk when realized volatility exceeds the implied move; review historical AVA earnings reactions and macro stress periods before sizing. Always rebuild the position from current AVA chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AVA?
- A iron condor on AVA is the iron condor strategy applied to AVA (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 AVA stock trading near $40.40, the strikes shown on this page are snapped to the nearest listed AVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVA 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 AVA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 16.10%), 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 AVA iron condor?
- The breakeven for the AVA 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 AVA market-implied 1-standard-deviation expected move is approximately 4.62%; 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 AVA?
- Iron condors on AVA are a delta-neutral premium-collection structure that profits if AVA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AVA implied volatility affect this iron condor?
- AVA ATM IV is at 16.10% with IV rank near 1.41%, 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.