COP Iron Condor Strategy
COP (ConocoPhillips), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
ConocoPhillips is an energy company that engages in the global exploration, production, transportation, and marketing of various resources, including crude petroleum, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids (NGLs). Its primary operations are centered on both conventional and tight oil formations, shale gas, heavy crude, LNG developments, and oil sands projects. The company's extensive portfolio includes unconventional resources located in North America; established conventional assets spanning North America, Europe, Asia, and Australia; numerous LNG ventures; oil sands properties within Canada; and a significant inventory of potential conventional and unconventional exploration opportunities. ConocoPhillips was established in 1917 and its corporate headquarters are situated in Houston, Texas.
COP (ConocoPhillips) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $155.09B, a trailing P/E of 16.64, a beta of 0.12 versus the broader market, a 52-week range of 85.57-135.87, average daily share volume of 7.7M, a public-listing history dating back to 1981, approximately 10K full-time employees. These structural characteristics shape how COP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.12 indicates COP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. COP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on COP?
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.
COP snapshot
As of August 14, 2026, spot at $126.41, ATM IV 27.43%, IV rank 23.17%, expected move 7.87%. The iron condor on COP 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 28-day expiry.
Why this iron condor structure on COP specifically: COP IV at 27.43% is on the cheap side of its 1-year range, which means a premium-selling COP iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.87% (roughly $9.94 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 COP expiries trade a higher absolute premium for lower per-day decay. Position sizing on COP should anchor to the underlying notional of $126.41 per share and to the trader's directional view on COP stock.
COP iron condor setup
The COP 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 COP at $126.41 on that close, the first option leg uses a $133.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COP 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 COP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $133.00 | $1.40 |
| Buy 1 | Call | $139.00 | $0.59 |
| Sell 1 | Put | $120.00 | $1.44 |
| Buy 1 | Put | $114.00 | $0.50 |
COP iron condor risk and reward
- Net Premium / Debit
- +$175.50
- Max Profit (per contract)
- $175.50
- Max Loss (per contract)
- -$424.50
- Breakeven(s)
- $118.25, $134.76
- Risk / Reward Ratio
- 0.413
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.
COP iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on COP. 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% | -$424.50 |
| $27.96 | -77.9% | -$424.50 |
| $55.91 | -55.8% | -$424.50 |
| $83.86 | -33.7% | -$424.50 |
| $111.81 | -11.6% | -$424.50 |
| $139.75 | +10.6% | -$424.50 |
| $167.70 | +32.7% | -$424.50 |
| $195.65 | +54.8% | -$424.50 |
| $223.60 | +76.9% | -$424.50 |
| $251.55 | +99.0% | -$424.50 |
When traders use iron condor on COP
Iron condors on COP are a delta-neutral premium-collection structure that profits if COP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
COP thesis for this iron condor
The market-implied 1-standard-deviation range for COP extends from approximately $116.47 on the downside to $136.35 on the upside. A COP iron condor is a delta-neutral premium-collection structure that pays off when COP 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 COP IV rank near 23.17% 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 COP at 27.43%. As a Energy name, COP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COP-specific events.
COP 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. COP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COP alongside the broader basket even when COP-specific fundamentals are unchanged. Short-premium structures like a iron condor on COP carry tail risk when realized volatility exceeds the implied move; review historical COP earnings reactions and macro stress periods before sizing. Always rebuild the position from current COP chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on COP?
- A iron condor on COP is the iron condor strategy applied to COP (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 COP stock at $126.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed COP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are COP 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 COP iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.43%), the computed maximum profit is $175.50 per contract and the computed maximum loss is -$424.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COP iron condor?
- The breakeven for the COP iron condor priced on this page is roughly $118.25 and $134.76 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 COP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.87%; 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 COP?
- Iron condors on COP are a delta-neutral premium-collection structure that profits if COP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current COP implied volatility affect this iron condor?
- COP ATM IV is at 27.43% with IV rank near 23.17%, 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.