MSI Iron Condor Strategy
MSI (Motorola Solutions, Inc.), in the Technology sector, (Communication Equipment industry), listed on NYSE.
Motorola Solutions, Inc. delivers essential communication and data analysis capabilities vital for critical operations across the United States, the United Kingdom, Canada, and other international markets. The company structures its extensive operations into two primary segments: Products and Systems Integration, and Software and Services. The Products and Systems Integration division offers a comprehensive suite of infrastructure, various devices, accessories, and video security solutions, alongside expert services for the deployment and seamless integration of systems, hardware, software, and specialized applications. This segment caters to governmental bodies, public safety agencies, and commercial enterprises that rely on private communication networks, advanced video security systems, and robust tools for managing mobile workforces. Their product portfolio spans land mobile radio (LMR) communication equipment, such as portable and vehicle-mounted two-way radios, as well as video security and access control hardware, including fixed and mobile cameras. It also encompasses core radio network software and central processing systems, base stations, consoles, and repeaters, in addition to sophisticated video analytics, network video management hardware and software, and access control solutions.
MSI (Motorola Solutions, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $77.97B, a trailing P/E of 36.50, a beta of 0.87 versus the broader market, a 52-week range of 359.36-493.57, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 23K full-time employees. These structural characteristics shape how MSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places MSI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.50 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. MSI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on MSI?
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.
MSI snapshot
As of August 14, 2026, spot at $466.48, ATM IV 20.90%, IV rank 15.65%, expected move 5.99%. The iron condor on MSI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on MSI specifically: MSI IV at 20.90% is on the cheap side of its 1-year range, which means a premium-selling MSI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.99% (roughly $27.95 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSI should anchor to the underlying notional of $466.48 per share and to the trader's directional view on MSI stock.
MSI iron condor setup
The MSI iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MSI at $466.48 on that close, the first option leg uses a $490.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSI chain at a 35-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 MSI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $490.00 | $3.80 |
| Buy 1 | Call | $510.00 | $1.18 |
| Sell 1 | Put | $440.00 | $3.38 |
| Buy 1 | Put | $420.00 | $2.80 |
MSI iron condor risk and reward
- Net Premium / Debit
- +$320.00
- Max Profit (per contract)
- $320.00
- Max Loss (per contract)
- -$1,680.00
- Breakeven(s)
- $436.94, $493.20
- Risk / Reward Ratio
- 0.190
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.
MSI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MSI. 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% | -$1,680.00 |
| $103.15 | -77.9% | -$1,680.00 |
| $206.29 | -55.8% | -$1,680.00 |
| $309.43 | -33.7% | -$1,680.00 |
| $412.57 | -11.6% | -$1,680.00 |
| $515.71 | +10.6% | -$1,680.00 |
| $618.85 | +32.7% | -$1,680.00 |
| $721.99 | +54.8% | -$1,680.00 |
| $825.13 | +76.9% | -$1,680.00 |
| $928.27 | +99.0% | -$1,680.00 |
When traders use iron condor on MSI
Iron condors on MSI are a delta-neutral premium-collection structure that profits if MSI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MSI thesis for this iron condor
The market-implied 1-standard-deviation range for MSI extends from approximately $438.53 on the downside to $494.43 on the upside. A MSI iron condor is a delta-neutral premium-collection structure that pays off when MSI 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 MSI IV rank near 15.65% 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 MSI at 20.90%. As a Technology name, MSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSI-specific events.
MSI 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. MSI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MSI alongside the broader basket even when MSI-specific fundamentals are unchanged. Short-premium structures like a iron condor on MSI carry tail risk when realized volatility exceeds the implied move; review historical MSI earnings reactions and macro stress periods before sizing. Always rebuild the position from current MSI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MSI?
- A iron condor on MSI is the iron condor strategy applied to MSI (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 MSI stock at $466.48 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MSI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MSI 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 MSI iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.90%), the computed maximum profit is $320.00 per contract and the computed maximum loss is -$1,680.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MSI iron condor?
- The breakeven for the MSI iron condor priced on this page is roughly $436.94 and $493.20 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The MSI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.99%; 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 MSI?
- Iron condors on MSI are a delta-neutral premium-collection structure that profits if MSI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MSI implied volatility affect this iron condor?
- MSI ATM IV is at 20.90% with IV rank near 15.65%, 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.