IVR Iron Condor Strategy
IVR (Invesco Mortgage Capital Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Invesco Mortgage Capital Inc. functions as a real estate investment trust (REIT), concentrating on acquiring, funding, and overseeing a diverse portfolio of mortgage-backed securities and other assets linked to real estate. Its holdings include both residential and commercial mortgage-backed securities, encompassing those guaranteed by U.S. government agencies or federally chartered corporations, as well as those lacking such guarantees. The company also invests in credit risk transfer (CRT) securities—unsecured obligations from government-sponsored enterprises—alongside residential and commercial mortgage loans, and various other real estate-related financial arrangements. Established in 2008 and based in Atlanta, Georgia, the company has opted for REIT tax status, which typically allows it to bypass federal corporate income taxes by distributing at least 90% of its taxable earnings to shareholders.
IVR (Invesco Mortgage Capital Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $567.4M, a trailing P/E of 11.22, a beta of 1.55 versus the broader market, a 52-week range of 7.1-9.5, average daily share volume of 2.3M, a public-listing history dating back to 2009. These structural characteristics shape how IVR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.55 indicates IVR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.22 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. IVR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on IVR?
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 IVR snapshot
As of June 29, 2026, spot at $7.84, ATM IV 46.40%, IV rank 9.40%, expected move 13.30%. The iron condor on IVR 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 18-day expiry.
Why this iron condor structure on IVR specifically: IVR IV at 46.40% is on the cheap side of its 1-year range, which means a premium-selling IVR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.30% (roughly $1.04 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IVR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVR should anchor to the underlying notional of $7.84 per share and to the trader's directional view on IVR stock.
IVR iron condor setup
The IVR 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 IVR near $7.84, the first option leg uses a $8.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVR chain at a 18-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 IVR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $8.23 | N/A |
| Buy 1 | Call | $8.62 | N/A |
| Sell 1 | Put | $7.45 | N/A |
| Buy 1 | Put | $7.06 | N/A |
IVR 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.
IVR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on IVR. 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 IVR
Iron condors on IVR are a delta-neutral premium-collection structure that profits if IVR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
IVR thesis for this iron condor
The market-implied 1-standard-deviation range for IVR extends from approximately $6.80 on the downside to $8.88 on the upside. A IVR iron condor is a delta-neutral premium-collection structure that pays off when IVR 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 IVR IV rank near 9.40% 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 IVR at 46.40%. As a Real Estate name, IVR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVR-specific events.
IVR 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. IVR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IVR alongside the broader basket even when IVR-specific fundamentals are unchanged. Short-premium structures like a iron condor on IVR carry tail risk when realized volatility exceeds the implied move; review historical IVR earnings reactions and macro stress periods before sizing. Always rebuild the position from current IVR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on IVR?
- A iron condor on IVR is the iron condor strategy applied to IVR (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 IVR stock trading near $7.84, the strikes shown on this page are snapped to the nearest listed IVR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IVR 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 IVR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 46.40%), 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 IVR iron condor?
- The breakeven for the IVR 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 IVR market-implied 1-standard-deviation expected move is approximately 13.30%; 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 IVR?
- Iron condors on IVR are a delta-neutral premium-collection structure that profits if IVR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current IVR implied volatility affect this iron condor?
- IVR ATM IV is at 46.40% with IV rank near 9.40%, 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.