KN Iron Condor Strategy
KN (Knowles Corporation), in the Technology sector, (Communication Equipment industry), listed on NYSE.
Knowles Corporation is a leading provider of specialized electronic components, offering an array of micro-acoustic microphones, sophisticated balanced armature speakers, comprehensive audio solutions, high-performance capacitors, and advanced radio frequency products. These precision technologies serve diverse industries, including consumer electronics, medical technology (medtech), defense, electric vehicles, industrial applications, and communications. The company operates through two distinct segments. Its Audio segment is dedicated to engineering and manufacturing innovative audio components, such as microphones, balanced armature speakers, and audio processors. These are integral to applications across mobile devices, hearing health solutions, True Wireless Stereo (TWS) products, the Internet of Things (IoT), and computing platforms. Concurrently, the Precision Devices (PD) segment focuses on the development and delivery of high-specification capacitor products and RF solutions.
KN (Knowles Corporation) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $3.43B, a trailing P/E of 61.19, a beta of 1.61 versus the broader market, a 52-week range of 17.34-42.93, average daily share volume of 1.0M, a public-listing history dating back to 2014, approximately 6K full-time employees. These structural characteristics shape how KN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.61 indicates KN 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 61.19 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a iron condor on KN?
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 KN snapshot
As of June 30, 2026, spot at $42.04, ATM IV 59.70%, IV rank 10.25%, expected move 17.12%. The iron condor on KN 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 17-day expiry.
Why this iron condor structure on KN specifically: KN IV at 59.70% is on the cheap side of its 1-year range, which means a premium-selling KN iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.12% (roughly $7.20 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KN should anchor to the underlying notional of $42.04 per share and to the trader's directional view on KN stock.
KN iron condor setup
The KN 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 KN near $42.04, the first option leg uses a $44.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KN chain at a 17-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 KN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $44.14 | N/A |
| Buy 1 | Call | $46.24 | N/A |
| Sell 1 | Put | $39.94 | N/A |
| Buy 1 | Put | $37.84 | N/A |
KN 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.
KN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on KN. 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 KN
Iron condors on KN are a delta-neutral premium-collection structure that profits if KN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
KN thesis for this iron condor
The market-implied 1-standard-deviation range for KN extends from approximately $34.84 on the downside to $49.24 on the upside. A KN iron condor is a delta-neutral premium-collection structure that pays off when KN 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 KN IV rank near 10.25% 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 KN at 59.70%. As a Technology name, KN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KN-specific events.
KN 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. KN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KN alongside the broader basket even when KN-specific fundamentals are unchanged. Short-premium structures like a iron condor on KN carry tail risk when realized volatility exceeds the implied move; review historical KN earnings reactions and macro stress periods before sizing. Always rebuild the position from current KN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on KN?
- A iron condor on KN is the iron condor strategy applied to KN (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 KN stock trading near $42.04, the strikes shown on this page are snapped to the nearest listed KN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KN 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 KN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 59.70%), 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 KN iron condor?
- The breakeven for the KN 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 KN market-implied 1-standard-deviation expected move is approximately 17.12%; 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 KN?
- Iron condors on KN are a delta-neutral premium-collection structure that profits if KN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current KN implied volatility affect this iron condor?
- KN ATM IV is at 59.70% with IV rank near 10.25%, 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.