How are CMC 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 CMC iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $172.50 per contract and the computed maximum loss is -$327.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CMC iron condor?

The breakeven for the CMC iron condor priced on this page is roughly $65.78 and $76.73 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 CMC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CMC implied volatility affect this iron condor?

CMC ATM IV is at 33.80% with IV rank near 15.37%, 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.

CMC Iron Condor Strategy

CMC (Commercial Metals Company), in the Basic Materials sector, (Steel industry), listed on NYSE.

Commercial Metals Company (CMC) is an international enterprise specializing in the production, recycling, and fabrication of steel and metal products, along with providing related services. The company serves markets across the United States, Poland, China, and other international regions. A significant facet of its business involves processing and marketing a wide array of ferrous and non-ferrous scrap metals. These raw materials are supplied to a diverse clientele, including steel mills, foundries, aluminum sheet and ingot producers, brass and bronze ingot makers, copper refineries, secondary lead smelters, specialty steel manufacturers, and high-temperature alloy fabricators. Commercial Metals Company manufactures and distributes a comprehensive range of finished long steel products. These encompass reinforcing bars (rebar), merchant bars, light structural sections, and various other specialized profiles.

CMC (Commercial Metals Company) trades in the Basic Materials sector, specifically Steel, with a market capitalization of approximately $8.00B, a trailing P/E of 13.49, a beta of 1.53 versus the broader market, a 52-week range of 53.08-84.87, average daily share volume of 1.2M, a public-listing history dating back to 1980, approximately 13K full-time employees. These structural characteristics shape how CMC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.53 indicates CMC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CMC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on CMC?

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.

CMC snapshot

As of August 14, 2026, spot at $71.75, ATM IV 33.80%, IV rank 15.37%, expected move 9.69%. The iron condor on CMC 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 CMC specifically: CMC IV at 33.80% is on the cheap side of its 1-year range, which means a premium-selling CMC iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.69% (roughly $6.95 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 CMC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMC should anchor to the underlying notional of $71.75 per share and to the trader's directional view on CMC stock.

CMC iron condor setup

The CMC 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 CMC at $71.75 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMC 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 CMC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$75.00	$1.80
Buy 1	Call	$80.00	$0.68
Sell 1	Put	$67.50	$1.30
Buy 1	Put	$65.00	$0.70

CMC iron condor risk and reward

Net Premium / Debit: +$172.50
Max Profit (per contract): $172.50
Max Loss (per contract): -$327.50
Breakeven(s): $65.78, $76.73
Risk / Reward Ratio: 0.527

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.

CMC iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on CMC. 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%	-$77.50
$15.87	-77.9%	-$77.50
$31.74	-55.8%	-$77.50
$47.60	-33.7%	-$77.50
$63.46	-11.6%	-$77.50
$79.33	+10.6%	-$260.11
$95.19	+32.7%	-$327.50
$111.05	+54.8%	-$327.50
$126.92	+76.9%	-$327.50
$142.78	+99.0%	-$327.50

When traders use iron condor on CMC

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

CMC thesis for this iron condor

The market-implied 1-standard-deviation range for CMC extends from approximately $64.80 on the downside to $78.70 on the upside. A CMC iron condor is a delta-neutral premium-collection structure that pays off when CMC 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 CMC IV rank near 15.37% 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 CMC at 33.80%. As a Basic Materials name, CMC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMC-specific events.

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

Frequently asked questions

What is a iron condor on CMC?: A iron condor on CMC is the iron condor strategy applied to CMC (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 CMC stock at $71.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CMC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CMC 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 CMC iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $172.50 per contract and the computed maximum loss is -$327.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CMC iron condor?: The breakeven for the CMC iron condor priced on this page is roughly $65.78 and $76.73 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 CMC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.69%; 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 CMC?: Iron condors on CMC are a delta-neutral premium-collection structure that profits if CMC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current CMC implied volatility affect this iron condor?: CMC ATM IV is at 33.80% with IV rank near 15.37%, 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.