AWR Iron Condor Strategy
AWR (American States Water Company), in the Utilities sector, (Regulated Water industry), listed on NYSE.
American States Water Company, through its subsidiaries, provides water and electric services to residential, commercial, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Services. The company purchases, produces, distributes, and sells water, as well as distributes electricity. As of December 31, 2021, American States Water Company provided water service to 262,770 customers located throughout 10 counties in the State of California; and distributed electricity to 24,656 customers in San Bernardino County mountain communities in California. The company also provides water and/or wastewater services, including the operation, maintenance, and construction of facilities at the water and/or wastewater systems at various military installations. American States Water Company was incorporated in 1929 and is based in San Dimas, California.
AWR (American States Water Company) trades in the Utilities sector, specifically Regulated Water, with a market capitalization of approximately $3.04B, a trailing P/E of 22.71, a beta of 0.59 versus the broader market, a 52-week range of 69.45-81.24, average daily share volume of 317K, a public-listing history dating back to 1973, approximately 517 full-time employees. These structural characteristics shape how AWR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates AWR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AWR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on AWR?
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 AWR snapshot
As of May 15, 2026, spot at $75.91, ATM IV 21.10%, IV rank 4.35%, expected move 6.05%. The iron condor on AWR 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 AWR specifically: AWR IV at 21.10% is on the cheap side of its 1-year range, which means a premium-selling AWR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.05% (roughly $4.59 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 AWR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AWR should anchor to the underlying notional of $75.91 per share and to the trader's directional view on AWR stock.
AWR iron condor setup
The AWR 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 AWR near $75.91, the first option leg uses a $79.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AWR 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 AWR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $79.71 | N/A |
| Buy 1 | Call | $83.50 | N/A |
| Sell 1 | Put | $72.11 | N/A |
| Buy 1 | Put | $68.32 | N/A |
AWR 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.
AWR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AWR. 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 AWR
Iron condors on AWR are a delta-neutral premium-collection structure that profits if AWR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AWR thesis for this iron condor
The market-implied 1-standard-deviation range for AWR extends from approximately $71.32 on the downside to $80.50 on the upside. A AWR iron condor is a delta-neutral premium-collection structure that pays off when AWR 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 AWR IV rank near 4.35% 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 AWR at 21.10%. As a Utilities name, AWR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AWR-specific events.
AWR 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. AWR positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AWR alongside the broader basket even when AWR-specific fundamentals are unchanged. Short-premium structures like a iron condor on AWR carry tail risk when realized volatility exceeds the implied move; review historical AWR earnings reactions and macro stress periods before sizing. Always rebuild the position from current AWR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AWR?
- A iron condor on AWR is the iron condor strategy applied to AWR (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 AWR stock trading near $75.91, the strikes shown on this page are snapped to the nearest listed AWR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AWR 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 AWR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 21.10%), 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 AWR iron condor?
- The breakeven for the AWR 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 AWR market-implied 1-standard-deviation expected move is approximately 6.05%; 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 AWR?
- Iron condors on AWR are a delta-neutral premium-collection structure that profits if AWR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AWR implied volatility affect this iron condor?
- AWR ATM IV is at 21.10% with IV rank near 4.35%, 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.