NJR Iron Condor Strategy
NJR (New Jersey Resources Corporation), in the Utilities sector, (Regulated Gas industry), listed on NYSE.
New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Storage and Transportation segment invests in natural gas transportation and storage facilities.
NJR (New Jersey Resources Corporation) trades in the Utilities sector, specifically Regulated Gas, with a market capitalization of approximately $5.77B, a trailing P/E of 16.89, a beta of 0.53 versus the broader market, a 52-week range of 43.46-57.85, average daily share volume of 538K, a public-listing history dating back to 1980, approximately 1K full-time employees. These structural characteristics shape how NJR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates NJR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NJR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on NJR?
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 NJR snapshot
As of May 15, 2026, spot at $57.16, ATM IV 43.00%, IV rank 23.19%, expected move 12.33%. The iron condor on NJR 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 NJR specifically: NJR IV at 43.00% is on the cheap side of its 1-year range, which means a premium-selling NJR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.33% (roughly $7.05 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 NJR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NJR should anchor to the underlying notional of $57.16 per share and to the trader's directional view on NJR stock.
NJR iron condor setup
The NJR 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 NJR near $57.16, the first option leg uses a $60.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NJR 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 NJR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $60.02 | N/A |
| Buy 1 | Call | $62.88 | N/A |
| Sell 1 | Put | $54.30 | N/A |
| Buy 1 | Put | $51.44 | N/A |
NJR 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.
NJR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NJR. 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 NJR
Iron condors on NJR are a delta-neutral premium-collection structure that profits if NJR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NJR thesis for this iron condor
The market-implied 1-standard-deviation range for NJR extends from approximately $50.11 on the downside to $64.21 on the upside. A NJR iron condor is a delta-neutral premium-collection structure that pays off when NJR 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 NJR IV rank near 23.19% 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 NJR at 43.00%. As a Utilities name, NJR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NJR-specific events.
NJR 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. NJR positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NJR alongside the broader basket even when NJR-specific fundamentals are unchanged. Short-premium structures like a iron condor on NJR carry tail risk when realized volatility exceeds the implied move; review historical NJR earnings reactions and macro stress periods before sizing. Always rebuild the position from current NJR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NJR?
- A iron condor on NJR is the iron condor strategy applied to NJR (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 NJR stock trading near $57.16, the strikes shown on this page are snapped to the nearest listed NJR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NJR 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 NJR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 43.00%), 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 NJR iron condor?
- The breakeven for the NJR 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 NJR market-implied 1-standard-deviation expected move is approximately 12.33%; 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 NJR?
- Iron condors on NJR are a delta-neutral premium-collection structure that profits if NJR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NJR implied volatility affect this iron condor?
- NJR ATM IV is at 43.00% with IV rank near 23.19%, 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.