DE Iron Condor Strategy
DE (Deere & Company), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.
Deere & Company manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers. The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications; other outdoor power products; and hay and forage equipment. This segment also resells products from other manufacturers. It serves dairy and livestock producers, crop producers, and turf and utility customers.
DE (Deere & Company) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $156.84B, a trailing P/E of 32.60, a beta of 0.97 versus the broader market, a 52-week range of 433-674.19, average daily share volume of 1.4M, a public-listing history dating back to 1972, approximately 73K full-time employees. These structural characteristics shape how DE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places DE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on DE?
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 DE snapshot
As of May 15, 2026, spot at $563.17, ATM IV 40.25%, IV rank 93.09%, expected move 11.54%. The iron condor on DE 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 28-day expiry.
Why this iron condor structure on DE specifically: DE IV at 40.25% is rich versus its 1-year range, which favors premium-selling structures like a DE iron condor, with a market-implied 1-standard-deviation move of approximately 11.54% (roughly $64.98 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 DE expiries trade a higher absolute premium for lower per-day decay. Position sizing on DE should anchor to the underlying notional of $563.17 per share and to the trader's directional view on DE stock.
DE iron condor setup
The DE 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 DE near $563.17, the first option leg uses a $590.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DE 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 DE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $590.00 | $13.05 |
| Buy 1 | Call | $620.00 | $7.00 |
| Sell 1 | Put | $535.00 | $13.70 |
| Buy 1 | Put | $505.00 | $6.13 |
DE iron condor risk and reward
- Net Premium / Debit
- +$1,362.50
- Max Profit (per contract)
- $1,362.50
- Max Loss (per contract)
- -$1,637.50
- Breakeven(s)
- $521.38, $603.63
- Risk / Reward Ratio
- 0.832
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.
DE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DE. 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% | -$1,637.50 |
| $124.53 | -77.9% | -$1,637.50 |
| $249.05 | -55.8% | -$1,637.50 |
| $373.57 | -33.7% | -$1,637.50 |
| $498.09 | -11.6% | -$1,637.50 |
| $622.60 | +10.6% | -$1,637.50 |
| $747.12 | +32.7% | -$1,637.50 |
| $871.64 | +54.8% | -$1,637.50 |
| $996.16 | +76.9% | -$1,637.50 |
| $1,120.68 | +99.0% | -$1,637.50 |
When traders use iron condor on DE
Iron condors on DE are a delta-neutral premium-collection structure that profits if DE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DE thesis for this iron condor
The market-implied 1-standard-deviation range for DE extends from approximately $498.19 on the downside to $628.15 on the upside. A DE iron condor is a delta-neutral premium-collection structure that pays off when DE 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 DE IV rank near 93.09% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on DE at 40.25%. As a Industrials name, DE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DE-specific events.
DE 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. DE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DE alongside the broader basket even when DE-specific fundamentals are unchanged. Short-premium structures like a iron condor on DE carry tail risk when realized volatility exceeds the implied move; review historical DE earnings reactions and macro stress periods before sizing. Always rebuild the position from current DE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DE?
- A iron condor on DE is the iron condor strategy applied to DE (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 DE stock trading near $563.17, the strikes shown on this page are snapped to the nearest listed DE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DE 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 DE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 40.25%), the computed maximum profit is $1,362.50 per contract and the computed maximum loss is -$1,637.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DE iron condor?
- The breakeven for the DE iron condor priced on this page is roughly $521.38 and $603.63 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 DE market-implied 1-standard-deviation expected move is approximately 11.54%; 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 DE?
- Iron condors on DE are a delta-neutral premium-collection structure that profits if DE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DE implied volatility affect this iron condor?
- DE ATM IV is at 40.25% with IV rank near 93.09%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.