KRP Iron Condor Strategy
KRP (Kimbell Royalty Partners, LP), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
Kimbell Royalty Partners, LP (KRP) and its affiliates are dedicated to acquiring and owning mineral and royalty interests in crude oil and natural gas properties across the United States. As of December 31, 2021, its comprehensive portfolio included approximately 11.4 million gross acres of mineral and royalty interests, alongside an additional 4.7 million gross acres representing overriding royalty interests. These holdings are geographically widespread, covering 28 states, and encompass ownership stakes in an estimated 122,000 gross wells. Notably, a significant portion of these — around 46,000 wells — are located within the highly productive Permian Basin. Kimbell Royalty Partners itself fulfills the role of general partner. The firm was established in 2013 and maintains its corporate headquarters in Fort Worth, Texas.
KRP (Kimbell Royalty Partners, LP) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $1.50B, a trailing P/E of 16.43, a beta of 0.28 versus the broader market, a 52-week range of 11.31-15.8, average daily share volume of 792K, a public-listing history dating back to 2017, approximately 29 full-time employees. These structural characteristics shape how KRP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates KRP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KRP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on KRP?
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.
KRP snapshot
As of August 14, 2026, spot at $15.14, ATM IV 470.10%, IV rank 99.60%, expected move 134.77%. The iron condor on KRP below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on KRP specifically: KRP IV at 470.10% is rich versus its 1-year range, which favors premium-selling structures like a KRP iron condor, with a market-implied 1-standard-deviation move of approximately 134.77% (roughly $20.40 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRP should anchor to the underlying notional of $15.14 per share and to the trader's directional view on KRP stock.
KRP iron condor setup
The KRP 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 KRP at $15.14 on that close, the first option leg uses a $15.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRP chain at a 35-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 KRP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $15.90 | N/A |
| Buy 1 | Call | $16.65 | N/A |
| Sell 1 | Put | $14.38 | N/A |
| Buy 1 | Put | $13.63 | N/A |
KRP 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.
KRP iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on KRP. 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 KRP
Iron condors on KRP are a delta-neutral premium-collection structure that profits if KRP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
KRP thesis for this iron condor
The market-implied 1-standard-deviation range for KRP extends from approximately $-5.26 on the downside to $35.54 on the upside. A KRP iron condor is a delta-neutral premium-collection structure that pays off when KRP 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 KRP IV rank near 99.60% 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 KRP at 470.10%. As a Energy name, KRP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRP-specific events.
KRP 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. KRP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRP alongside the broader basket even when KRP-specific fundamentals are unchanged. Short-premium structures like a iron condor on KRP carry tail risk when realized volatility exceeds the implied move; review historical KRP earnings reactions and macro stress periods before sizing. Always rebuild the position from current KRP chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on KRP?
- A iron condor on KRP is the iron condor strategy applied to KRP (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 KRP stock at $15.14 on the most recent close, the strikes shown on this page are snapped to the nearest listed KRP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KRP 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 KRP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 470.10%), 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 KRP iron condor?
- The breakeven for the KRP iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The KRP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 134.77%; 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 KRP?
- Iron condors on KRP are a delta-neutral premium-collection structure that profits if KRP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current KRP implied volatility affect this iron condor?
- KRP ATM IV is at 470.10% with IV rank near 99.60%, 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.