MDT Iron Condor Strategy
MDT (Medtronic plc), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain.
MDT (Medtronic plc) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $97.84B, a trailing P/E of 21.18, a beta of 0.63 versus the broader market, a 52-week range of 74.4-106.33, average daily share volume of 8.8M, a public-listing history dating back to 1973, approximately 95K full-time employees. These structural characteristics shape how MDT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.63 indicates MDT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MDT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on MDT?
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 MDT snapshot
As of May 15, 2026, spot at $76.36, ATM IV 32.49%, IV rank 97.79%, expected move 9.32%. The iron condor on MDT 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 28-day expiry.
Why this iron condor structure on MDT specifically: MDT IV at 32.49% is rich versus its 1-year range, which favors premium-selling structures like a MDT iron condor, with a market-implied 1-standard-deviation move of approximately 9.32% (roughly $7.11 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDT should anchor to the underlying notional of $76.36 per share and to the trader's directional view on MDT stock.
MDT iron condor setup
The MDT 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 MDT near $76.36, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDT chain at a 28-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 MDT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $80.00 | $1.36 |
| Buy 1 | Call | $84.00 | $0.50 |
| Sell 1 | Put | $73.00 | $1.28 |
| Buy 1 | Put | $69.00 | $0.47 |
MDT iron condor risk and reward
- Net Premium / Debit
- +$167.00
- Max Profit (per contract)
- $167.00
- Max Loss (per contract)
- -$233.00
- Breakeven(s)
- $71.33, $81.67
- Risk / Reward Ratio
- 0.717
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.
MDT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MDT. 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% | -$233.00 |
| $16.89 | -77.9% | -$233.00 |
| $33.78 | -55.8% | -$233.00 |
| $50.66 | -33.7% | -$233.00 |
| $67.54 | -11.6% | -$233.00 |
| $84.42 | +10.6% | -$233.00 |
| $101.31 | +32.7% | -$233.00 |
| $118.19 | +54.8% | -$233.00 |
| $135.07 | +76.9% | -$233.00 |
| $151.95 | +99.0% | -$233.00 |
When traders use iron condor on MDT
Iron condors on MDT are a delta-neutral premium-collection structure that profits if MDT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MDT thesis for this iron condor
The market-implied 1-standard-deviation range for MDT extends from approximately $69.25 on the downside to $83.47 on the upside. A MDT iron condor is a delta-neutral premium-collection structure that pays off when MDT 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 MDT IV rank near 97.79% 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 MDT at 32.49%. As a Healthcare name, MDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDT-specific events.
MDT 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. MDT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDT alongside the broader basket even when MDT-specific fundamentals are unchanged. Short-premium structures like a iron condor on MDT carry tail risk when realized volatility exceeds the implied move; review historical MDT earnings reactions and macro stress periods before sizing. Always rebuild the position from current MDT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MDT?
- A iron condor on MDT is the iron condor strategy applied to MDT (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 MDT stock trading near $76.36, the strikes shown on this page are snapped to the nearest listed MDT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDT 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 MDT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 32.49%), the computed maximum profit is $167.00 per contract and the computed maximum loss is -$233.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDT iron condor?
- The breakeven for the MDT iron condor priced on this page is roughly $71.33 and $81.67 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 MDT market-implied 1-standard-deviation expected move is approximately 9.32%; 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 MDT?
- Iron condors on MDT are a delta-neutral premium-collection structure that profits if MDT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MDT implied volatility affect this iron condor?
- MDT ATM IV is at 32.49% with IV rank near 97.79%, 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.