DCO Iron Condor Strategy
DCO (Ducommun Incorporated), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace and defense, industrial, medical, and other industries in the United States. It operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; higher-level electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. It also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals.
DCO (Ducommun Incorporated) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $2.28B, a beta of 1.07 versus the broader market, a 52-week range of 66.12-153.96, average daily share volume of 223K, a public-listing history dating back to 1973, approximately 2K full-time employees. These structural characteristics shape how DCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places DCO 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 DCO?
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 DCO snapshot
As of May 15, 2026, spot at $144.63, ATM IV 39.90%, IV rank 30.85%, expected move 11.44%. The iron condor on DCO 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 DCO specifically: DCO IV at 39.90% is mid-range versus its 1-year history, so the credit collected on a DCO iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.44% (roughly $16.54 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 DCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on DCO should anchor to the underlying notional of $144.63 per share and to the trader's directional view on DCO stock.
DCO iron condor setup
The DCO 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 DCO near $144.63, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DCO 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 DCO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $150.00 | $4.90 |
| Buy 1 | Call | $160.00 | $2.45 |
| Sell 1 | Put | $135.00 | $2.85 |
| Buy 1 | Put | $130.00 | $2.38 |
DCO iron condor risk and reward
- Net Premium / Debit
- +$292.50
- Max Profit (per contract)
- $292.50
- Max Loss (per contract)
- -$707.50
- Breakeven(s)
- $132.08, $152.93
- 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.
DCO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DCO. 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% | -$207.50 |
| $31.99 | -77.9% | -$207.50 |
| $63.96 | -55.8% | -$207.50 |
| $95.94 | -33.7% | -$207.50 |
| $127.92 | -11.6% | -$207.50 |
| $159.90 | +10.6% | -$697.19 |
| $191.87 | +32.7% | -$707.50 |
| $223.85 | +54.8% | -$707.50 |
| $255.83 | +76.9% | -$707.50 |
| $287.81 | +99.0% | -$707.50 |
When traders use iron condor on DCO
Iron condors on DCO are a delta-neutral premium-collection structure that profits if DCO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DCO thesis for this iron condor
The market-implied 1-standard-deviation range for DCO extends from approximately $128.09 on the downside to $161.17 on the upside. A DCO iron condor is a delta-neutral premium-collection structure that pays off when DCO 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 DCO IV rank near 30.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on DCO should anchor more to the directional view and the expected-move geometry. As a Industrials name, DCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DCO-specific events.
DCO 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. DCO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DCO alongside the broader basket even when DCO-specific fundamentals are unchanged. Short-premium structures like a iron condor on DCO carry tail risk when realized volatility exceeds the implied move; review historical DCO earnings reactions and macro stress periods before sizing. Always rebuild the position from current DCO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DCO?
- A iron condor on DCO is the iron condor strategy applied to DCO (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 DCO stock trading near $144.63, the strikes shown on this page are snapped to the nearest listed DCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DCO 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 DCO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 39.90%), the computed maximum profit is $292.50 per contract and the computed maximum loss is -$707.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DCO iron condor?
- The breakeven for the DCO iron condor priced on this page is roughly $132.08 and $152.93 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 DCO market-implied 1-standard-deviation expected move is approximately 11.44%; 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 DCO?
- Iron condors on DCO are a delta-neutral premium-collection structure that profits if DCO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DCO implied volatility affect this iron condor?
- DCO ATM IV is at 39.90% with IV rank near 30.85%, 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.