KSS Iron Condor Strategy
KSS (Kohl's Corporation), in the Consumer Cyclical sector, (Department Stores industry), listed on NYSE.
Kohl's Corporation functions as a prominent retail chain operating throughout the United States. It provides customers with a wide array of branded merchandise, including clothing, shoes, fashion accessories, beauty supplies, and home decor, which are sold both through its physical store locations and its comprehensive online portal. A significant portion of its product offerings comes from its own exclusive lines, such as Apt. 9, Croft & Barrow, Jumping Beans, SO, and Sonoma Goods for Life, alongside popular collaborations like Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. By March 21, 2022, the company managed approximately 1,100 Kohl's retail outlets, complemented by its digital storefront at www.Kohls.com. The enterprise was established in 1988 and its main corporate offices are situated in Menomonee Falls, Wisconsin.
KSS (Kohl's Corporation) trades in the Consumer Cyclical sector, specifically Department Stores, with a market capitalization of approximately $2.18B, a trailing P/E of 7.92, a beta of 1.48 versus the broader market, a 52-week range of 8.34-25.22, average daily share volume of 5.0M, a public-listing history dating back to 1992, approximately 87K full-time employees. These structural characteristics shape how KSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.48 indicates KSS 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 7.92 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. KSS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on KSS?
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 KSS snapshot
As of June 29, 2026, spot at $18.48, ATM IV 61.00%, IV rank 8.95%, expected move 17.49%. The iron condor on KSS 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 32-day expiry.
Why this iron condor structure on KSS specifically: KSS IV at 61.00% is on the cheap side of its 1-year range, which means a premium-selling KSS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.49% (roughly $3.23 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on KSS should anchor to the underlying notional of $18.48 per share and to the trader's directional view on KSS stock.
KSS iron condor setup
The KSS 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 KSS near $18.48, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KSS chain at a 32-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 KSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $19.00 | $1.13 |
| Buy 1 | Call | $20.00 | $0.75 |
| Sell 1 | Put | $18.00 | $1.03 |
| Buy 1 | Put | $17.00 | $0.65 |
KSS iron condor risk and reward
- Net Premium / Debit
- +$76.00
- Max Profit (per contract)
- $76.00
- Max Loss (per contract)
- -$24.00
- Breakeven(s)
- $17.24, $19.76
- Risk / Reward Ratio
- 3.167
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.
KSS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on KSS. 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 | -99.9% | -$24.00 |
| $4.09 | -77.8% | -$24.00 |
| $8.18 | -55.7% | -$24.00 |
| $12.26 | -33.6% | -$24.00 |
| $16.35 | -11.5% | -$24.00 |
| $20.43 | +10.6% | -$24.00 |
| $24.52 | +32.7% | -$24.00 |
| $28.60 | +54.8% | -$24.00 |
| $32.69 | +76.9% | -$24.00 |
| $36.77 | +99.0% | -$24.00 |
When traders use iron condor on KSS
Iron condors on KSS are a delta-neutral premium-collection structure that profits if KSS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
KSS thesis for this iron condor
The market-implied 1-standard-deviation range for KSS extends from approximately $15.25 on the downside to $21.71 on the upside. A KSS iron condor is a delta-neutral premium-collection structure that pays off when KSS 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 KSS IV rank near 8.95% 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 KSS at 61.00%. As a Consumer Cyclical name, KSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KSS-specific events.
KSS 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. KSS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KSS alongside the broader basket even when KSS-specific fundamentals are unchanged. Short-premium structures like a iron condor on KSS carry tail risk when realized volatility exceeds the implied move; review historical KSS earnings reactions and macro stress periods before sizing. Always rebuild the position from current KSS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on KSS?
- A iron condor on KSS is the iron condor strategy applied to KSS (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 KSS stock trading near $18.48, the strikes shown on this page are snapped to the nearest listed KSS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KSS 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 KSS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 61.00%), the computed maximum profit is $76.00 per contract and the computed maximum loss is -$24.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KSS iron condor?
- The breakeven for the KSS iron condor priced on this page is roughly $17.24 and $19.76 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 KSS market-implied 1-standard-deviation expected move is approximately 17.49%; 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 KSS?
- Iron condors on KSS are a delta-neutral premium-collection structure that profits if KSS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current KSS implied volatility affect this iron condor?
- KSS ATM IV is at 61.00% with IV rank near 8.95%, 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.