How are BWA 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 BWA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $110.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BWA iron condor?

The breakeven for the BWA iron condor priced on this page is roughly $61.40 and $71.10 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 BWA market-implied 1-standard-deviation expected move is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BWA implied volatility affect this iron condor?

BWA ATM IV is at 42.20% with IV rank near 39.10%, 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.

BWA Iron Condor Strategy

BWA (BorgWarner Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.

BorgWarner Inc. (BWA) is a prominent global supplier of advanced propulsion technologies, catering to a wide spectrum of vehicles including those powered by internal combustion engines, hybrids, and fully electric drivetrains. The company's operations are divided into four primary business units: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment is responsible for components that optimize engine performance and thermal control. This includes various turbocharging solutions (such as turbochargers, eBoosters, and eTurbos), engine timing and emissions control systems, thermal management products, gasoline ignition technology, smart actuators, powertrain sensors, and a range of battery-related items like modules, packs, heaters, and charging systems. The E-Propulsion & Drivetrain segment focuses on electrical powertrains and power transmission. Its offerings encompass rotating electrical components, sophisticated power electronics, control modules with embedded software, as well as friction and mechanical parts for automatic transmissions and torque management systems.

BWA (BorgWarner Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $13.97B, a trailing P/E of 38.63, a beta of 1.07 versus the broader market, a 52-week range of 33.14-78.82, average daily share volume of 2.9M, a public-listing history dating back to 1993, approximately 38K full-time employees. These structural characteristics shape how BWA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.07 places BWA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 38.63 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. BWA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on BWA?

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 BWA snapshot

As of June 29, 2026, spot at $66.00, ATM IV 42.20%, IV rank 39.10%, expected move 12.10%. The iron condor on BWA 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 18-day expiry.

Why this iron condor structure on BWA specifically: BWA IV at 42.20% is mid-range versus its 1-year history, so the credit collected on a BWA iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.10% (roughly $7.98 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BWA expiries trade a higher absolute premium for lower per-day decay. Position sizing on BWA should anchor to the underlying notional of $66.00 per share and to the trader's directional view on BWA stock.

BWA iron condor setup

The BWA 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 BWA near $66.00, 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 BWA chain at a 18-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 BWA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$70.00	$1.18
Buy 1	Call	$72.50	$0.65
Sell 1	Put	$62.50	$0.98
Buy 1	Put	$60.00	$0.40

BWA iron condor risk and reward

Net Premium / Debit: +$110.00
Max Profit (per contract): $110.00
Max Loss (per contract): -$140.00
Breakeven(s): $61.40, $71.10
Risk / Reward Ratio: 0.786

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.

BWA iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on BWA. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$140.00
$14.60	-77.9%	-$140.00
$29.19	-55.8%	-$140.00
$43.79	-33.7%	-$140.00
$58.38	-11.5%	-$140.00
$72.97	+10.6%	-$140.00
$87.56	+32.7%	-$140.00
$102.15	+54.8%	-$140.00
$116.74	+76.9%	-$140.00
$131.34	+99.0%	-$140.00

When traders use iron condor on BWA

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

BWA thesis for this iron condor

The market-implied 1-standard-deviation range for BWA extends from approximately $58.02 on the downside to $73.98 on the upside. A BWA iron condor is a delta-neutral premium-collection structure that pays off when BWA 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 BWA IV rank near 39.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on BWA should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BWA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BWA-specific events.

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

Frequently asked questions

What is a iron condor on BWA?: A iron condor on BWA is the iron condor strategy applied to BWA (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 BWA stock trading near $66.00, the strikes shown on this page are snapped to the nearest listed BWA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BWA 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 BWA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $110.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BWA iron condor?: The breakeven for the BWA iron condor priced on this page is roughly $61.40 and $71.10 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 BWA market-implied 1-standard-deviation expected move is approximately 12.10%; 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 BWA?: Iron condors on BWA are a delta-neutral premium-collection structure that profits if BWA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current BWA implied volatility affect this iron condor?: BWA ATM IV is at 42.20% with IV rank near 39.10%, 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.