OKE Iron Condor Strategy
OKE (ONEOK, Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
ONEOK, Inc., along with its subsidiaries, functions as a leading energy infrastructure company within the United States. Its primary focus is the comprehensive management of natural gas, encompassing gathering, processing, storage, and transportation. These operations are structured into three distinct segments: Natural Gas Gathering and Processing, Natural Gas Liquids (NGL), and Natural Gas Pipelines. The company owns an extensive system of natural gas gathering pipelines and processing plants, predominantly situated in the Mid-Continent and Rocky Mountain regions. Furthermore, ONEOK manages both federally (FERC) and state-regulated interstate and intrastate natural gas transmission pipelines, alongside crucial natural gas storage facilities. A significant component of ONEOK's business is dedicated to Natural Gas Liquids.
OKE (ONEOK, Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $58.27B, a trailing P/E of 15.95, a beta of 0.72 versus the broader market, a 52-week range of 64.02-96.07, average daily share volume of 4.0M, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how OKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places OKE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on OKE?
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.
OKE snapshot
As of August 14, 2026, spot at $95.00, ATM IV 25.40%, IV rank 1.02%, expected move 7.28%. The iron condor on OKE 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 OKE specifically: OKE IV at 25.40% is on the cheap side of its 1-year range, which means a premium-selling OKE iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.28% (roughly $6.92 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 OKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on OKE should anchor to the underlying notional of $95.00 per share and to the trader's directional view on OKE stock.
OKE iron condor setup
The OKE 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 OKE at $95.00 on that close, 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 OKE 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 OKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $100.00 | $1.18 |
| Buy 1 | Call | $105.00 | $0.45 |
| Sell 1 | Put | $90.00 | $1.08 |
| Buy 1 | Put | $85.00 | $0.35 |
OKE iron condor risk and reward
- Net Premium / Debit
- +$145.00
- Max Profit (per contract)
- $145.00
- Max Loss (per contract)
- -$355.00
- Breakeven(s)
- $88.55, $101.45
- Risk / Reward Ratio
- 0.408
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.
OKE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on OKE. 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% | -$355.00 |
| $21.01 | -77.9% | -$355.00 |
| $42.02 | -55.8% | -$355.00 |
| $63.02 | -33.7% | -$355.00 |
| $84.03 | -11.6% | -$355.00 |
| $105.03 | +10.6% | -$355.00 |
| $126.03 | +32.7% | -$355.00 |
| $147.04 | +54.8% | -$355.00 |
| $168.04 | +76.9% | -$355.00 |
| $189.05 | +99.0% | -$355.00 |
When traders use iron condor on OKE
Iron condors on OKE are a delta-neutral premium-collection structure that profits if OKE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
OKE thesis for this iron condor
The market-implied 1-standard-deviation range for OKE extends from approximately $88.08 on the downside to $101.92 on the upside. A OKE iron condor is a delta-neutral premium-collection structure that pays off when OKE 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 OKE IV rank near 1.02% 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 OKE at 25.40%. As a Energy name, OKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OKE-specific events.
OKE 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. OKE positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OKE alongside the broader basket even when OKE-specific fundamentals are unchanged. Short-premium structures like a iron condor on OKE carry tail risk when realized volatility exceeds the implied move; review historical OKE earnings reactions and macro stress periods before sizing. Always rebuild the position from current OKE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on OKE?
- A iron condor on OKE is the iron condor strategy applied to OKE (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 OKE stock at $95.00 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OKE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OKE 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 OKE iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.40%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$355.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OKE iron condor?
- The breakeven for the OKE iron condor priced on this page is roughly $88.55 and $101.45 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 OKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.28%; 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 OKE?
- Iron condors on OKE are a delta-neutral premium-collection structure that profits if OKE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current OKE implied volatility affect this iron condor?
- OKE ATM IV is at 25.40% with IV rank near 1.02%, 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.