FELE Iron Condor Strategy
FELE (Franklin Electric Co., Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates through three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers submersible motors, pumps, drives, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure.
FELE (Franklin Electric Co., Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $4.30B, a trailing P/E of 28.60, a beta of 1.07 versus the broader market, a 52-week range of 83.42-111.53, average daily share volume of 344K, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how FELE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places FELE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FELE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FELE?
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 FELE snapshot
As of May 15, 2026, spot at $96.17, ATM IV 155.50%, IV rank 78.78%, expected move 44.58%. The iron condor on FELE 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 FELE specifically: FELE IV at 155.50% is rich versus its 1-year range, which favors premium-selling structures like a FELE iron condor, with a market-implied 1-standard-deviation move of approximately 44.58% (roughly $42.87 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 FELE expiries trade a higher absolute premium for lower per-day decay. Position sizing on FELE should anchor to the underlying notional of $96.17 per share and to the trader's directional view on FELE stock.
FELE iron condor setup
The FELE 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 FELE near $96.17, the first option leg uses a $100.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FELE 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 FELE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $100.98 | N/A |
| Buy 1 | Call | $105.79 | N/A |
| Sell 1 | Put | $91.36 | N/A |
| Buy 1 | Put | $86.55 | N/A |
FELE 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.
FELE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FELE. 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 FELE
Iron condors on FELE are a delta-neutral premium-collection structure that profits if FELE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FELE thesis for this iron condor
The market-implied 1-standard-deviation range for FELE extends from approximately $53.30 on the downside to $139.04 on the upside. A FELE iron condor is a delta-neutral premium-collection structure that pays off when FELE 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 FELE IV rank near 78.78% 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 FELE at 155.50%. As a Industrials name, FELE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FELE-specific events.
FELE 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. FELE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FELE alongside the broader basket even when FELE-specific fundamentals are unchanged. Short-premium structures like a iron condor on FELE carry tail risk when realized volatility exceeds the implied move; review historical FELE earnings reactions and macro stress periods before sizing. Always rebuild the position from current FELE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FELE?
- A iron condor on FELE is the iron condor strategy applied to FELE (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 FELE stock trading near $96.17, the strikes shown on this page are snapped to the nearest listed FELE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FELE 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 FELE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 155.50%), 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 FELE iron condor?
- The breakeven for the FELE 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 FELE market-implied 1-standard-deviation expected move is approximately 44.58%; 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 FELE?
- Iron condors on FELE are a delta-neutral premium-collection structure that profits if FELE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FELE implied volatility affect this iron condor?
- FELE ATM IV is at 155.50% with IV rank near 78.78%, 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.