MHK Iron Condor Strategy
MHK (Mohawk Industries, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NYSE.
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces in the United States, Europe, Russia, and internationally. It operates through three segments: Global Ceramic, Flooring North America (Flooring NA), and Flooring Rest of the World (Flooring ROW). The Global Ceramic segment provides a range of ceramic tile, porcelain tile, and natural stone products; and sources, markets, and distributes other tile related products. This segment markets and distributes its products under the American Olean, Daltile, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, and Ragno brands. The Flooring NA segment offers floor covering product lines in a range of colors, textures, and patterns, including carpets, carpet tiles, rugs and mats, carpet pads, hardwood, laminate, medium-density fiberboards, luxury vinyl tiles (LVT), and sheet vinyl products. This segment markets and distributes its flooring products under the Aladdin Commercial, Durkan, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, and Quick-Step brands.
MHK (Mohawk Industries, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $5.97B, a trailing P/E of 14.51, a beta of 1.21 versus the broader market, a 52-week range of 93.6-143.13, average daily share volume of 1.0M, a public-listing history dating back to 1992, approximately 42K full-time employees. These structural characteristics shape how MHK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places MHK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on MHK?
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 MHK snapshot
As of May 15, 2026, spot at $96.97, ATM IV 41.90%, IV rank 41.57%, expected move 12.01%. The iron condor on MHK 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 MHK specifically: MHK IV at 41.90% is mid-range versus its 1-year history, so the credit collected on a MHK iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.01% (roughly $11.65 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 MHK expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHK should anchor to the underlying notional of $96.97 per share and to the trader's directional view on MHK stock.
MHK iron condor setup
The MHK 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 MHK near $96.97, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHK 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 MHK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $100.00 | $3.65 |
| Buy 1 | Call | $105.00 | $1.95 |
| Sell 1 | Put | $90.00 | $2.13 |
| Buy 1 | Put | $85.00 | $1.08 |
MHK iron condor risk and reward
- Net Premium / Debit
- +$275.00
- Max Profit (per contract)
- $275.00
- Max Loss (per contract)
- -$225.00
- Breakeven(s)
- $87.25, $102.75
- Risk / Reward Ratio
- 1.222
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.
MHK iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MHK. 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% | -$225.00 |
| $21.45 | -77.9% | -$225.00 |
| $42.89 | -55.8% | -$225.00 |
| $64.33 | -33.7% | -$225.00 |
| $85.77 | -11.6% | -$148.20 |
| $107.21 | +10.6% | -$225.00 |
| $128.65 | +32.7% | -$225.00 |
| $150.09 | +54.8% | -$225.00 |
| $171.53 | +76.9% | -$225.00 |
| $192.97 | +99.0% | -$225.00 |
When traders use iron condor on MHK
Iron condors on MHK are a delta-neutral premium-collection structure that profits if MHK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MHK thesis for this iron condor
The market-implied 1-standard-deviation range for MHK extends from approximately $85.32 on the downside to $108.62 on the upside. A MHK iron condor is a delta-neutral premium-collection structure that pays off when MHK 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 MHK IV rank near 41.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on MHK should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MHK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHK-specific events.
MHK 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. MHK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MHK alongside the broader basket even when MHK-specific fundamentals are unchanged. Short-premium structures like a iron condor on MHK carry tail risk when realized volatility exceeds the implied move; review historical MHK earnings reactions and macro stress periods before sizing. Always rebuild the position from current MHK chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MHK?
- A iron condor on MHK is the iron condor strategy applied to MHK (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 MHK stock trading near $96.97, the strikes shown on this page are snapped to the nearest listed MHK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MHK 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 MHK iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is $275.00 per contract and the computed maximum loss is -$225.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MHK iron condor?
- The breakeven for the MHK iron condor priced on this page is roughly $87.25 and $102.75 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 MHK market-implied 1-standard-deviation expected move is approximately 12.01%; 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 MHK?
- Iron condors on MHK are a delta-neutral premium-collection structure that profits if MHK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MHK implied volatility affect this iron condor?
- MHK ATM IV is at 41.90% with IV rank near 41.57%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.