DNOW Iron Condor Strategy
DNOW (Dnow Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Dnow Inc. operates as a key supplier of industrial and downstream energy products for various sectors, including petroleum refining, chemical processing, liquefied natural gas (LNG) terminals, power generation utilities, and diverse industrial manufacturing operations. Its market presence spans the United States, Canada, and international territories. The firm markets its extensive product range under its proprietary brand names, DistributionNOW and DNOW. It furnishes a broad array of critical components and supplies, encompassing consumable maintenance, repair, and operational (MRO) items. This includes an extensive inventory of pipes, valves, fittings, flanges, gaskets, fasteners, electrical components, instrumentation, artificial lift systems, pumping solutions, valve actuation and modular process equipment, and measurement and control apparatus. Furthermore, Dnow provides mill supplies, various tools, and comprehensive safety and personal protective equipment (PPE), alongside specialized applied products like protective coatings and diverse expendable goods.
DNOW (Dnow Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.60B, a beta of 0.84 versus the broader market, a 52-week range of 10.935-17.26, average daily share volume of 3.2M, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how DNOW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places DNOW 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 DNOW?
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 DNOW snapshot
As of June 30, 2026, spot at $12.91, ATM IV 28.40%, IV rank 4.63%, expected move 8.14%. The iron condor on DNOW 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 52-day expiry.
Why this iron condor structure on DNOW specifically: DNOW IV at 28.40% is on the cheap side of its 1-year range, which means a premium-selling DNOW iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.14% (roughly $1.05 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DNOW expiries trade a higher absolute premium for lower per-day decay. Position sizing on DNOW should anchor to the underlying notional of $12.91 per share and to the trader's directional view on DNOW stock.
DNOW iron condor setup
The DNOW 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 DNOW near $12.91, the first option leg uses a $13.56 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DNOW chain at a 52-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 DNOW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $13.56 | N/A |
| Buy 1 | Call | $14.20 | N/A |
| Sell 1 | Put | $12.26 | N/A |
| Buy 1 | Put | $11.62 | N/A |
DNOW 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.
DNOW iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DNOW. 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 DNOW
Iron condors on DNOW are a delta-neutral premium-collection structure that profits if DNOW stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DNOW thesis for this iron condor
The market-implied 1-standard-deviation range for DNOW extends from approximately $11.86 on the downside to $13.96 on the upside. A DNOW iron condor is a delta-neutral premium-collection structure that pays off when DNOW 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 DNOW IV rank near 4.63% 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 DNOW at 28.40%. As a Energy name, DNOW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DNOW-specific events.
DNOW 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. DNOW positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DNOW alongside the broader basket even when DNOW-specific fundamentals are unchanged. Short-premium structures like a iron condor on DNOW carry tail risk when realized volatility exceeds the implied move; review historical DNOW earnings reactions and macro stress periods before sizing. Always rebuild the position from current DNOW chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DNOW?
- A iron condor on DNOW is the iron condor strategy applied to DNOW (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 DNOW stock trading near $12.91, the strikes shown on this page are snapped to the nearest listed DNOW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DNOW 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 DNOW iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 28.40%), 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 DNOW iron condor?
- The breakeven for the DNOW 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 DNOW market-implied 1-standard-deviation expected move is approximately 8.14%; 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 DNOW?
- Iron condors on DNOW are a delta-neutral premium-collection structure that profits if DNOW stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DNOW implied volatility affect this iron condor?
- DNOW ATM IV is at 28.40% with IV rank near 4.63%, 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.