How are BTU 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 BTU iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 58.51%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BTU iron condor?

The breakeven for the BTU iron condor priced on this page is roughly $22.40 and $25.61 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 BTU market-implied 1-standard-deviation expected move is approximately 16.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BTU implied volatility affect this iron condor?

BTU ATM IV is at 58.51% with IV rank near 33.55%, 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.

BTU Iron Condor Strategy

BTU (Peabody Energy Corporation), in the Energy sector, (Coal industry), listed on NYSE.

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally. The company operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments. It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. As of December 31, 2021, it owned interests in 17 coal mining operations located in the United States and Australia; and had approximately 2.5 billion tons of proven and probable coal reserves and approximately 450,000 acres of surface property through ownership and lease agreements.

BTU (Peabody Energy Corporation) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $2.93B, a beta of 0.34 versus the broader market, a 52-week range of 12.58-41.14, average daily share volume of 3.5M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how BTU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.34 indicates BTU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BTU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on BTU?

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 BTU snapshot

As of May 15, 2026, spot at $23.94, ATM IV 58.51%, IV rank 33.55%, expected move 16.78%. The iron condor on BTU 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 28-day expiry.

Why this iron condor structure on BTU specifically: BTU IV at 58.51% is mid-range versus its 1-year history, so the credit collected on a BTU iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 16.78% (roughly $4.02 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTU expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTU should anchor to the underlying notional of $23.94 per share and to the trader's directional view on BTU stock.

BTU iron condor setup

The BTU 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 BTU near $23.94, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTU chain at a 28-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 BTU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$25.00	$1.12
Buy 1	Call	$26.00	$0.79
Sell 1	Put	$23.00	$1.02
Buy 1	Put	$22.00	$0.74

BTU iron condor risk and reward

Net Premium / Debit: +$60.50
Max Profit (per contract): $60.50
Max Loss (per contract): -$39.50
Breakeven(s): $22.40, $25.61
Risk / Reward Ratio: 1.532

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.

BTU iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on BTU. 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%	-$39.50
$5.30	-77.9%	-$39.50
$10.59	-55.7%	-$39.50
$15.89	-33.6%	-$39.50
$21.18	-11.5%	-$39.50
$26.47	+10.6%	-$39.50
$31.76	+32.7%	-$39.50
$37.06	+54.8%	-$39.50
$42.35	+76.9%	-$39.50
$47.64	+99.0%	-$39.50

When traders use iron condor on BTU

Iron condors on BTU are a delta-neutral premium-collection structure that profits if BTU stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

BTU thesis for this iron condor

The market-implied 1-standard-deviation range for BTU extends from approximately $19.92 on the downside to $27.96 on the upside. A BTU iron condor is a delta-neutral premium-collection structure that pays off when BTU 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 BTU IV rank near 33.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on BTU should anchor more to the directional view and the expected-move geometry. As a Energy name, BTU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTU-specific events.

BTU 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. BTU positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BTU alongside the broader basket even when BTU-specific fundamentals are unchanged. Short-premium structures like a iron condor on BTU carry tail risk when realized volatility exceeds the implied move; review historical BTU earnings reactions and macro stress periods before sizing. Always rebuild the position from current BTU chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on BTU?: A iron condor on BTU is the iron condor strategy applied to BTU (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 BTU stock trading near $23.94, the strikes shown on this page are snapped to the nearest listed BTU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BTU 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 BTU iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 58.51%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BTU iron condor?: The breakeven for the BTU iron condor priced on this page is roughly $22.40 and $25.61 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 BTU market-implied 1-standard-deviation expected move is approximately 16.78%; 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 BTU?: Iron condors on BTU are a delta-neutral premium-collection structure that profits if BTU stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current BTU implied volatility affect this iron condor?: BTU ATM IV is at 58.51% with IV rank near 33.55%, 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.