AVY Iron Condor Strategy
AVY (Avery Dennison Corporation), in the Industrials sector, (Business Equipment & Supplies industry), listed on NYSE.
Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands.
AVY (Avery Dennison Corporation) trades in the Industrials sector, specifically Business Equipment & Supplies, with a market capitalization of approximately $12.14B, a trailing P/E of 17.72, a beta of 0.85 versus the broader market, a 52-week range of 156.23-199.54, average daily share volume of 728K, a public-listing history dating back to 1977, approximately 35K full-time employees. These structural characteristics shape how AVY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places AVY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on AVY?
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 AVY snapshot
As of May 15, 2026, spot at $156.24, ATM IV 25.50%, IV rank 46.26%, expected move 7.31%. The iron condor on AVY 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 AVY specifically: AVY IV at 25.50% is mid-range versus its 1-year history, so the credit collected on a AVY iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.31% (roughly $11.42 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 AVY expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVY should anchor to the underlying notional of $156.24 per share and to the trader's directional view on AVY stock.
AVY iron condor setup
The AVY 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 AVY near $156.24, the first option leg uses a $165.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVY 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 AVY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $165.00 | $1.98 |
| Buy 1 | Call | $170.00 | $1.15 |
| Sell 1 | Put | $150.00 | $2.35 |
| Buy 1 | Put | $140.00 | $1.03 |
AVY iron condor risk and reward
- Net Premium / Debit
- +$215.00
- Max Profit (per contract)
- $215.00
- Max Loss (per contract)
- -$785.00
- Breakeven(s)
- $147.85, $167.15
- Risk / Reward Ratio
- 0.274
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.
AVY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AVY. 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% | -$785.00 |
| $34.55 | -77.9% | -$785.00 |
| $69.10 | -55.8% | -$785.00 |
| $103.64 | -33.7% | -$785.00 |
| $138.19 | -11.6% | -$785.00 |
| $172.73 | +10.6% | -$285.00 |
| $207.28 | +32.7% | -$285.00 |
| $241.82 | +54.8% | -$285.00 |
| $276.37 | +76.9% | -$285.00 |
| $310.91 | +99.0% | -$285.00 |
When traders use iron condor on AVY
Iron condors on AVY are a delta-neutral premium-collection structure that profits if AVY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AVY thesis for this iron condor
The market-implied 1-standard-deviation range for AVY extends from approximately $144.82 on the downside to $167.66 on the upside. A AVY iron condor is a delta-neutral premium-collection structure that pays off when AVY 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 AVY IV rank near 46.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on AVY should anchor more to the directional view and the expected-move geometry. As a Industrials name, AVY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVY-specific events.
AVY 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. AVY positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVY alongside the broader basket even when AVY-specific fundamentals are unchanged. Short-premium structures like a iron condor on AVY carry tail risk when realized volatility exceeds the implied move; review historical AVY earnings reactions and macro stress periods before sizing. Always rebuild the position from current AVY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AVY?
- A iron condor on AVY is the iron condor strategy applied to AVY (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 AVY stock trading near $156.24, the strikes shown on this page are snapped to the nearest listed AVY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVY 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 AVY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $215.00 per contract and the computed maximum loss is -$785.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVY iron condor?
- The breakeven for the AVY iron condor priced on this page is roughly $147.85 and $167.15 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 AVY market-implied 1-standard-deviation expected move is approximately 7.31%; 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 AVY?
- Iron condors on AVY are a delta-neutral premium-collection structure that profits if AVY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AVY implied volatility affect this iron condor?
- AVY ATM IV is at 25.50% with IV rank near 46.26%, 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.