DX Iron Condor Strategy
DX (Dynex Capital, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Dynex Capital, Inc. operates as a mortgage real estate investment trust (mREIT), primarily engaging in the leveraged acquisition of various mortgage-backed securities (MBS) within the United States. Its investment portfolio includes both agency and non-agency MBS. Agency MBS are distinguished by a principal payment guarantee from a U.S. government entity or a government-sponsored enterprise (GSE), such as Fannie Mae or Freddie Mac. In contrast, non-agency MBS do not possess this governmental backing. Dynex's holdings specifically encompass residential MBS, commercial MBS (CMBS), and certain CMBS interest-only instruments. For federal income tax purposes, the company holds the designation of a real estate investment trust.
DX (Dynex Capital, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $3.21B, a trailing P/E of 6.61, a beta of 0.94 versus the broader market, a 52-week range of 11.83-14.93, average daily share volume of 5.2M, a public-listing history dating back to 1988, approximately 28 full-time employees. These structural characteristics shape how DX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places DX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.61 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. DX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on DX?
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.
DX snapshot
As of August 14, 2026, spot at $13.07, ATM IV 15.00%, IV rank 2.82%, expected move 4.30%. The iron condor on DX 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 DX specifically: DX IV at 15.00% is on the cheap side of its 1-year range, which means a premium-selling DX iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.30% (roughly $0.56 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 DX expiries trade a higher absolute premium for lower per-day decay. Position sizing on DX should anchor to the underlying notional of $13.07 per share and to the trader's directional view on DX stock.
DX iron condor setup
The DX 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 DX at $13.07 on that close, the first option leg uses a $13.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DX 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 DX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $13.72 | N/A |
| Buy 1 | Call | $14.38 | N/A |
| Sell 1 | Put | $12.42 | N/A |
| Buy 1 | Put | $11.76 | N/A |
DX 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.
DX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DX. 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 DX
Iron condors on DX are a delta-neutral premium-collection structure that profits if DX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DX thesis for this iron condor
The market-implied 1-standard-deviation range for DX extends from approximately $12.51 on the downside to $13.63 on the upside. A DX iron condor is a delta-neutral premium-collection structure that pays off when DX 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 DX IV rank near 2.82% 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 DX at 15.00%. As a Real Estate name, DX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DX-specific events.
DX 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. DX positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DX alongside the broader basket even when DX-specific fundamentals are unchanged. Short-premium structures like a iron condor on DX carry tail risk when realized volatility exceeds the implied move; review historical DX earnings reactions and macro stress periods before sizing. Always rebuild the position from current DX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DX?
- A iron condor on DX is the iron condor strategy applied to DX (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 DX stock at $13.07 on the most recent close, the strikes shown on this page are snapped to the nearest listed DX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DX 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 DX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 15.00%), 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 DX iron condor?
- The breakeven for the DX 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 DX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.30%; 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 DX?
- Iron condors on DX are a delta-neutral premium-collection structure that profits if DX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DX implied volatility affect this iron condor?
- DX ATM IV is at 15.00% with IV rank near 2.82%, 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.