MEOH Iron Condor Strategy
MEOH (Methanex Corporation), in the Basic Materials sector, (Chemicals industry), listed on NASDAQ.
Methanex Corporation produces and supplies methanol in North America, the Asia Pacific, Europe, and South America. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.
MEOH (Methanex Corporation) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $4.92B, a beta of 0.84 versus the broader market, a 52-week range of 31.57-66.75, average daily share volume of 1.6M, a public-listing history dating back to 1992, approximately 1K full-time employees. These structural characteristics shape how MEOH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places MEOH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MEOH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on MEOH?
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 MEOH snapshot
As of May 15, 2026, spot at $63.70, ATM IV 57.50%, IV rank 75.12%, expected move 16.48%. The iron condor on MEOH 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 MEOH specifically: MEOH IV at 57.50% is rich versus its 1-year range, which favors premium-selling structures like a MEOH iron condor, with a market-implied 1-standard-deviation move of approximately 16.48% (roughly $10.50 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 MEOH expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEOH should anchor to the underlying notional of $63.70 per share and to the trader's directional view on MEOH stock.
MEOH iron condor setup
The MEOH 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 MEOH near $63.70, the first option leg uses a $66.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEOH 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 MEOH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $66.89 | N/A |
| Buy 1 | Call | $70.07 | N/A |
| Sell 1 | Put | $60.52 | N/A |
| Buy 1 | Put | $57.33 | N/A |
MEOH 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.
MEOH iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MEOH. 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 MEOH
Iron condors on MEOH are a delta-neutral premium-collection structure that profits if MEOH stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MEOH thesis for this iron condor
The market-implied 1-standard-deviation range for MEOH extends from approximately $53.20 on the downside to $74.20 on the upside. A MEOH iron condor is a delta-neutral premium-collection structure that pays off when MEOH 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 MEOH IV rank near 75.12% 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 MEOH at 57.50%. As a Basic Materials name, MEOH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEOH-specific events.
MEOH 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. MEOH positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MEOH alongside the broader basket even when MEOH-specific fundamentals are unchanged. Short-premium structures like a iron condor on MEOH carry tail risk when realized volatility exceeds the implied move; review historical MEOH earnings reactions and macro stress periods before sizing. Always rebuild the position from current MEOH chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MEOH?
- A iron condor on MEOH is the iron condor strategy applied to MEOH (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 MEOH stock trading near $63.70, the strikes shown on this page are snapped to the nearest listed MEOH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MEOH 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 MEOH iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 57.50%), 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 MEOH iron condor?
- The breakeven for the MEOH 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 MEOH market-implied 1-standard-deviation expected move is approximately 16.48%; 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 MEOH?
- Iron condors on MEOH are a delta-neutral premium-collection structure that profits if MEOH stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MEOH implied volatility affect this iron condor?
- MEOH ATM IV is at 57.50% with IV rank near 75.12%, 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.