BKR Iron Condor Strategy
BKR (Baker Hughes Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides services for onshore and offshore oilfield operations. The IET segment combines expertise, technologies, and services for industrial and energy customers including on and off-shore, LNG, pipeline and gas storage, refining, petrochemical, distributed gas, flow and process control, and industrial segments such as nuclear, aviation, automotive, marine, food and beverage, mining, cement and utilities. The company was founded in April 1987 and is headquartered in Houston, TX.
BKR (Baker Hughes Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $63.81B, a trailing P/E of 20.57, a beta of 0.96 versus the broader market, a 52-week range of 41.96-70.41, average daily share volume of 8.6M, a public-listing history dating back to 1987, approximately 54K full-time employees. These structural characteristics shape how BKR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places BKR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BKR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on BKR?
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.
BKR snapshot
As of August 14, 2026, spot at $64.68, ATM IV 31.00%, IV rank 13.35%, expected move 8.89%. The iron condor on BKR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on BKR specifically: BKR IV at 31.00% is on the cheap side of its 1-year range, which means a premium-selling BKR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.89% (roughly $5.75 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKR should anchor to the underlying notional of $64.68 per share and to the trader's directional view on BKR stock.
BKR iron condor setup
The BKR iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BKR at $64.68 on that close, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BKR chain at a 35-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 BKR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $70.00 | $0.75 |
| Buy 1 | Call | $70.00 | $0.75 |
| Sell 1 | Put | $60.00 | $0.78 |
| Buy 1 | Put | $60.00 | $0.78 |
BKR iron condor risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- 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.
BKR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on BKR. 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% | $0.00 |
| $14.31 | -77.9% | $0.00 |
| $28.61 | -55.8% | $0.00 |
| $42.91 | -33.7% | $0.00 |
| $57.21 | -11.5% | $0.00 |
| $71.51 | +10.6% | $0.00 |
| $85.81 | +32.7% | $0.00 |
| $100.11 | +54.8% | $0.00 |
| $114.41 | +76.9% | $0.00 |
| $128.71 | +99.0% | $0.00 |
When traders use iron condor on BKR
Iron condors on BKR are a delta-neutral premium-collection structure that profits if BKR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
BKR thesis for this iron condor
The market-implied 1-standard-deviation range for BKR extends from approximately $58.93 on the downside to $70.43 on the upside. A BKR iron condor is a delta-neutral premium-collection structure that pays off when BKR 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 BKR IV rank near 13.35% 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 BKR at 31.00%. As a Energy name, BKR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BKR-specific events.
BKR 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. BKR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BKR alongside the broader basket even when BKR-specific fundamentals are unchanged. Short-premium structures like a iron condor on BKR carry tail risk when realized volatility exceeds the implied move; review historical BKR earnings reactions and macro stress periods before sizing. Always rebuild the position from current BKR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on BKR?
- A iron condor on BKR is the iron condor strategy applied to BKR (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 BKR stock at $64.68 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BKR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BKR 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 BKR iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.00%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BKR iron condor?
- The breakeven for the BKR iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BKR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.89%; 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 BKR?
- Iron condors on BKR are a delta-neutral premium-collection structure that profits if BKR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current BKR implied volatility affect this iron condor?
- BKR ATM IV is at 31.00% with IV rank near 13.35%, 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.