IMO Iron Condor Strategy
IMO (Imperial Oil Limited), in the Energy sector, (Oil & Gas Integrated industry), listed on AMEX.
Imperial Oil Limited engages in exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream and Chemical segments. The Upstream segment explores for, and produces crude oil, natural gas, synthetic oil, and bitumen. As of December 31, 2021, this segment had 386 million oil-equivalent barrels of proved undeveloped reserves. The Downstream segment is involved in the transportation and refining of crude oil, blending of refined products and the distribution, and marketing of refined products. It also transports crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; and owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario.
IMO (Imperial Oil Limited) trades in the Energy sector, specifically Oil & Gas Integrated, with a market capitalization of approximately $65.47B, a trailing P/E of 29.92, a beta of 0.85 versus the broader market, a 52-week range of 70.29-134.31, average daily share volume of 725K, a public-listing history dating back to 1980, approximately 5K full-time employees. These structural characteristics shape how IMO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places IMO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IMO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on IMO?
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 IMO snapshot
As of May 15, 2026, spot at $134.34, ATM IV 35.00%, IV rank 61.14%, expected move 10.03%. The iron condor on IMO 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 IMO specifically: IMO IV at 35.00% is mid-range versus its 1-year history, so the credit collected on a IMO iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.03% (roughly $13.48 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 IMO expiries trade a higher absolute premium for lower per-day decay. Position sizing on IMO should anchor to the underlying notional of $134.34 per share and to the trader's directional view on IMO stock.
IMO iron condor setup
The IMO 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 IMO near $134.34, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IMO 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 IMO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $140.00 | $3.50 |
| Buy 1 | Call | $150.00 | $1.00 |
| Sell 1 | Put | $130.00 | $3.90 |
| Buy 1 | Put | $120.00 | $1.45 |
IMO iron condor risk and reward
- Net Premium / Debit
- +$495.00
- Max Profit (per contract)
- $495.00
- Max Loss (per contract)
- -$505.00
- Breakeven(s)
- $125.05, $144.95
- Risk / Reward Ratio
- 0.980
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.
IMO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on IMO. 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% | -$505.00 |
| $29.71 | -77.9% | -$505.00 |
| $59.41 | -55.8% | -$505.00 |
| $89.12 | -33.7% | -$505.00 |
| $118.82 | -11.6% | -$505.00 |
| $148.52 | +10.6% | -$357.11 |
| $178.22 | +32.7% | -$505.00 |
| $207.93 | +54.8% | -$505.00 |
| $237.63 | +76.9% | -$505.00 |
| $267.33 | +99.0% | -$505.00 |
When traders use iron condor on IMO
Iron condors on IMO are a delta-neutral premium-collection structure that profits if IMO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
IMO thesis for this iron condor
The market-implied 1-standard-deviation range for IMO extends from approximately $120.86 on the downside to $147.82 on the upside. A IMO iron condor is a delta-neutral premium-collection structure that pays off when IMO 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 IMO IV rank near 61.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on IMO should anchor more to the directional view and the expected-move geometry. As a Energy name, IMO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IMO-specific events.
IMO 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. IMO positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IMO alongside the broader basket even when IMO-specific fundamentals are unchanged. Short-premium structures like a iron condor on IMO carry tail risk when realized volatility exceeds the implied move; review historical IMO earnings reactions and macro stress periods before sizing. Always rebuild the position from current IMO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on IMO?
- A iron condor on IMO is the iron condor strategy applied to IMO (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 IMO stock trading near $134.34, the strikes shown on this page are snapped to the nearest listed IMO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IMO 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 IMO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 35.00%), the computed maximum profit is $495.00 per contract and the computed maximum loss is -$505.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IMO iron condor?
- The breakeven for the IMO iron condor priced on this page is roughly $125.05 and $144.95 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 IMO market-implied 1-standard-deviation expected move is approximately 10.03%; 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 IMO?
- Iron condors on IMO are a delta-neutral premium-collection structure that profits if IMO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current IMO implied volatility affect this iron condor?
- IMO ATM IV is at 35.00% with IV rank near 61.14%, 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.