CTOS Iron Condor Strategy
CTOS (Custom Truck One Source, Inc.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.
Custom Truck One Source, Inc. (CTOS) specializes in providing comprehensive services for specialty equipment across North America, serving crucial industries such as electric utility (transmission and distribution), telecommunications, rail, and other infrastructure development sectors. The company's operations are structured into three primary segments: Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services. Within its Equipment Rental Solutions division, CTOS offers access to a wide array of new and pre-owned specialized machinery for hire, including truck-mounted aerial lifts, various types of cranes, service vehicles, dump trucks, trailers, and digger derricks. The Truck and Equipment Sales segment focuses on the direct sale of new equipment, which can be extensively customized to meet the specific demands of its diverse clientele. Furthermore, the Aftermarket Parts and Services segment ensures ongoing support through equipment maintenance and repair services, along with the provision of specialized replacement parts. Originally founded in 1988 as Nesco Holdings, Inc., the company officially changed its name to Custom Truck One Source, Inc. in April 2021 and maintains its corporate headquarters in Kansas City, Missouri.
CTOS (Custom Truck One Source, Inc.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $2.46B, a trailing P/E of 114.91, a beta of 1.37 versus the broader market, a 52-week range of 5.18-12.23, average daily share volume of 1.1M, a public-listing history dating back to 2017, approximately 3K full-time employees. These structural characteristics shape how CTOS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.37 indicates CTOS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 114.91 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.
What is a iron condor on CTOS?
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.
CTOS snapshot
As of August 14, 2026, spot at $10.45, ATM IV 67.60%, IV rank 11.10%, expected move 19.38%. The iron condor on CTOS below is built from the 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 CTOS specifically: CTOS IV at 67.60% is on the cheap side of its 1-year range, which means a premium-selling CTOS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.38% (roughly $2.03 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 CTOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTOS should anchor to the underlying notional of $10.45 per share and to the trader's directional view on CTOS stock.
CTOS iron condor setup
The CTOS 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 CTOS at $10.45 on that close, the first option leg uses a $10.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTOS 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 CTOS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $10.97 | N/A |
| Buy 1 | Call | $11.50 | N/A |
| Sell 1 | Put | $9.93 | N/A |
| Buy 1 | Put | $9.41 | N/A |
CTOS iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- 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.
CTOS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CTOS. 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.
When traders use iron condor on CTOS
Iron condors on CTOS are a delta-neutral premium-collection structure that profits if CTOS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CTOS thesis for this iron condor
The market-implied 1-standard-deviation range for CTOS extends from approximately $8.42 on the downside to $12.48 on the upside. A CTOS iron condor is a delta-neutral premium-collection structure that pays off when CTOS 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 CTOS IV rank near 11.10% 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 CTOS at 67.60%. As a Industrials name, CTOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTOS-specific events.
CTOS 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. CTOS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTOS alongside the broader basket even when CTOS-specific fundamentals are unchanged. Short-premium structures like a iron condor on CTOS carry tail risk when realized volatility exceeds the implied move; review historical CTOS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CTOS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CTOS?
- A iron condor on CTOS is the iron condor strategy applied to CTOS (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 CTOS stock at $10.45 on the most recent close, the strikes shown on this page are snapped to the nearest listed CTOS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CTOS 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 CTOS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 67.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CTOS iron condor?
- The breakeven for the CTOS iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CTOS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.38%; 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 CTOS?
- Iron condors on CTOS are a delta-neutral premium-collection structure that profits if CTOS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CTOS implied volatility affect this iron condor?
- CTOS ATM IV is at 67.60% with IV rank near 11.10%, 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.