How are LAD 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 LAD iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 36.30%), the computed maximum profit is $472.50 per contract and the computed maximum loss is -$527.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LAD iron condor?

The breakeven for the LAD iron condor priced on this page is roughly $255.28 and $294.73 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 LAD market-implied 1-standard-deviation expected move is approximately 10.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LAD implied volatility affect this iron condor?

LAD ATM IV is at 36.30% with IV rank near 23.33%, 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.

LAD Iron Condor Strategy

LAD (Lithia Motors, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NYSE.

Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts under the Driveway and GreenCars brand names. As of February 18, 2022, the company operated through 278 stores. It also offers its products online through 300 websites. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.

LAD (Lithia Motors, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $6.23B, a trailing P/E of 9.00, a beta of 1.28 versus the broader market, a 52-week range of 239.78-360.56, average daily share volume of 333K, a public-listing history dating back to 1996, approximately 30K full-time employees. These structural characteristics shape how LAD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places LAD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.00 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LAD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on LAD?

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 LAD snapshot

As of May 13, 2026, spot at $273.33, ATM IV 36.30%, IV rank 23.33%, expected move 10.41%. The iron condor on LAD 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 34-day expiry.

Why this iron condor structure on LAD specifically: LAD IV at 36.30% is on the cheap side of its 1-year range, which means a premium-selling LAD iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.41% (roughly $28.45 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LAD expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAD should anchor to the underlying notional of $273.33 per share and to the trader's directional view on LAD stock.

LAD iron condor setup

The LAD 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 LAD near $273.33, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAD chain at a 34-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 LAD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$290.00	$3.43
Buy 1	Call	$300.00	$1.95
Sell 1	Put	$260.00	$9.25
Buy 1	Put	$250.00	$6.00

LAD iron condor risk and reward

Net Premium / Debit: +$472.50
Max Profit (per contract): $472.50
Max Loss (per contract): -$527.50
Breakeven(s): $255.28, $294.73
Risk / Reward Ratio: 0.896

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.

LAD iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on LAD. 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	-100.0%	-$527.50
$60.44	-77.9%	-$527.50
$120.88	-55.8%	-$527.50
$181.31	-33.7%	-$527.50
$241.74	-11.6%	-$527.50
$302.18	+10.6%	-$527.50
$362.61	+32.7%	-$527.50
$423.05	+54.8%	-$527.50
$483.48	+76.9%	-$527.50
$543.91	+99.0%	-$527.50

When traders use iron condor on LAD

Iron condors on LAD are a delta-neutral premium-collection structure that profits if LAD stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

LAD thesis for this iron condor

The market-implied 1-standard-deviation range for LAD extends from approximately $244.88 on the downside to $301.78 on the upside. A LAD iron condor is a delta-neutral premium-collection structure that pays off when LAD 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 LAD IV rank near 23.33% 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 LAD at 36.30%. As a Consumer Cyclical name, LAD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAD-specific events.

LAD 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. LAD positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAD alongside the broader basket even when LAD-specific fundamentals are unchanged. Short-premium structures like a iron condor on LAD carry tail risk when realized volatility exceeds the implied move; review historical LAD earnings reactions and macro stress periods before sizing. Always rebuild the position from current LAD chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on LAD?: A iron condor on LAD is the iron condor strategy applied to LAD (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 LAD stock trading near $273.33, the strikes shown on this page are snapped to the nearest listed LAD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LAD 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 LAD iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 36.30%), the computed maximum profit is $472.50 per contract and the computed maximum loss is -$527.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LAD iron condor?: The breakeven for the LAD iron condor priced on this page is roughly $255.28 and $294.73 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 LAD market-implied 1-standard-deviation expected move is approximately 10.41%; 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 LAD?: Iron condors on LAD are a delta-neutral premium-collection structure that profits if LAD stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current LAD implied volatility affect this iron condor?: LAD ATM IV is at 36.30% with IV rank near 23.33%, 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.