KE Iron Condor Strategy
KE (Kimball Electronics, Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
Kimball Electronics, Inc. provides contract electronics manufacturing services and diversified manufacturing services to customers in the automotive, medical, industrial, and public safety end markets. The company's manufacturing services include design services and support, supply chain services and support, and rapid prototyping and product introduction support services, as well as product design, and process validation and qualification services. Its manufacturing services also comprise industrialization and automation of manufacturing processes; reliability testing, including testing of products under a series of environmental conditions; production and testing of printed circuit board assemblies; assembly, production, and packaging of medical devices and disposables, and other non-electronic products; drug delivery devices and solutions with and without electronics; design engineering and manufacturing of automation equipment, test and inspection equipment, and precision molded plastics; software design services; and product life cycle management services. The company operates in the United States, China, Mexico, Poland, Romania, Thailand, and Vietnam. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.
KE (Kimball Electronics, Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $600.0M, a trailing P/E of 23.46, a beta of 1.25 versus the broader market, a 52-week range of 17.17-33.19, average daily share volume of 151K, a public-listing history dating back to 2014, approximately 7K full-time employees. These structural characteristics shape how KE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places KE 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 KE?
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 KE snapshot
As of May 13, 2026, spot at $25.23, ATM IV 69.50%, IV rank 24.31%, expected move 19.93%. The iron condor on KE 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 36-day expiry.
Why this iron condor structure on KE specifically: KE IV at 69.50% is on the cheap side of its 1-year range, which means a premium-selling KE iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.93% (roughly $5.03 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KE expiries trade a higher absolute premium for lower per-day decay. Position sizing on KE should anchor to the underlying notional of $25.23 per share and to the trader's directional view on KE stock.
KE iron condor setup
The KE 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 KE near $25.23, the first option leg uses a $26.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KE chain at a 36-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 KE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $26.49 | N/A |
| Buy 1 | Call | $27.75 | N/A |
| Sell 1 | Put | $23.97 | N/A |
| Buy 1 | Put | $22.71 | N/A |
KE 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.
KE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on KE. 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 KE
Iron condors on KE are a delta-neutral premium-collection structure that profits if KE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
KE thesis for this iron condor
The market-implied 1-standard-deviation range for KE extends from approximately $20.20 on the downside to $30.26 on the upside. A KE iron condor is a delta-neutral premium-collection structure that pays off when KE 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 KE IV rank near 24.31% 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 KE at 69.50%. As a Industrials name, KE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KE-specific events.
KE 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. KE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KE alongside the broader basket even when KE-specific fundamentals are unchanged. Short-premium structures like a iron condor on KE carry tail risk when realized volatility exceeds the implied move; review historical KE earnings reactions and macro stress periods before sizing. Always rebuild the position from current KE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on KE?
- A iron condor on KE is the iron condor strategy applied to KE (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 KE stock trading near $25.23, the strikes shown on this page are snapped to the nearest listed KE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KE 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 KE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 69.50%), 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 KE iron condor?
- The breakeven for the KE 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 KE market-implied 1-standard-deviation expected move is approximately 19.93%; 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 KE?
- Iron condors on KE are a delta-neutral premium-collection structure that profits if KE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current KE implied volatility affect this iron condor?
- KE ATM IV is at 69.50% with IV rank near 24.31%, 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.