CVU Iron Condor Strategy
CVU (CPI Aerostructures, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on AMEX.
CPI Aerostructures, Inc. engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. The company also offers aero systems, such as reconnaissance pod structures and fuel panel systems; and supplies parts for maintenance, repair, and overhaul (MRO), as well as kitting contracts. In addition, it operates as a subcontractor for defense contractors and commercial contractors, as well as a contractor for the United States Department of Defense. Further, the company offers engineering, program management, supply chain management, kitting, and MRO services. Additionally, it offers machine gunner window assemblies, hover infrared suppression system module assemblies, wing sets and spares kits, lock assemblies, canopy activation drive shaft assemblies, rudder island and drag chute canister assemblies, composite electronics racks, structural wing components, fixed leading edges, and engine inlet assemblies. The company was formerly known as Consortium of Precision Industries, Inc. and changed its name to CPI Aerostructures, Inc. in July 1992.
CVU (CPI Aerostructures, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $49.5M, a beta of 0.87 versus the broader market, a 52-week range of 2.02-5.4, average daily share volume of 102K, a public-listing history dating back to 1992, approximately 212 full-time employees. These structural characteristics shape how CVU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places CVU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on CVU?
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 CVU snapshot
As of May 15, 2026, spot at $3.68, ATM IV 122.50%, IV rank 27.40%, expected move 35.12%. The iron condor on CVU 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 34-day expiry.
Why this iron condor structure on CVU specifically: CVU IV at 122.50% is on the cheap side of its 1-year range, which means a premium-selling CVU iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 35.12% (roughly $1.29 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CVU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVU should anchor to the underlying notional of $3.68 per share and to the trader's directional view on CVU stock.
CVU iron condor setup
The CVU 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 CVU near $3.68, the first option leg uses a $3.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVU chain at a 34-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 CVU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $3.86 | N/A |
| Buy 1 | Call | $4.05 | N/A |
| Sell 1 | Put | $3.50 | N/A |
| Buy 1 | Put | $3.31 | N/A |
CVU 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.
CVU iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CVU. 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 CVU
Iron condors on CVU are a delta-neutral premium-collection structure that profits if CVU stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CVU thesis for this iron condor
The market-implied 1-standard-deviation range for CVU extends from approximately $2.39 on the downside to $4.97 on the upside. A CVU iron condor is a delta-neutral premium-collection structure that pays off when CVU 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 CVU IV rank near 27.40% 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 CVU at 122.50%. As a Industrials name, CVU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVU-specific events.
CVU 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. CVU positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVU alongside the broader basket even when CVU-specific fundamentals are unchanged. Short-premium structures like a iron condor on CVU carry tail risk when realized volatility exceeds the implied move; review historical CVU earnings reactions and macro stress periods before sizing. Always rebuild the position from current CVU chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CVU?
- A iron condor on CVU is the iron condor strategy applied to CVU (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 CVU stock trading near $3.68, the strikes shown on this page are snapped to the nearest listed CVU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVU 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 CVU iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 122.50%), 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 CVU iron condor?
- The breakeven for the CVU iron condor priced on this page is no defined breakeven on the modeled curve 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 CVU market-implied 1-standard-deviation expected move is approximately 35.12%; 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 CVU?
- Iron condors on CVU are a delta-neutral premium-collection structure that profits if CVU stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CVU implied volatility affect this iron condor?
- CVU ATM IV is at 122.50% with IV rank near 27.40%, 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.