OTTR Iron Condor Strategy
OTTR (Otter Tail Corporation), in the Utilities sector, (Diversified Utilities industry), listed on NASDAQ.
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas. It serves approximately 133,000 residential, industrial, and other commercial customers. Its Manufacturing segment engages in the contract machining, metal parts stamping, fabrication and painting, and production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components, and extruded raw material stock for recreational vehicle, agricultural, construction, lawn and garden, and industrial and energy equipment industries. It also manufactures clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries.
OTTR (Otter Tail Corporation) trades in the Utilities sector, specifically Diversified Utilities, with a market capitalization of approximately $3.75B, a trailing P/E of 13.35, a beta of 0.47 versus the broader market, a 52-week range of 74.15-92.24, average daily share volume of 292K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how OTTR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates OTTR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OTTR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on OTTR?
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 OTTR snapshot
As of May 15, 2026, spot at $88.14, ATM IV 326.10%, IV rank 65.59%, expected move 5.60%. The iron condor on OTTR 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 OTTR specifically: OTTR IV at 326.10% is mid-range versus its 1-year history, so the credit collected on a OTTR iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 5.60% (roughly $4.93 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 OTTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on OTTR should anchor to the underlying notional of $88.14 per share and to the trader's directional view on OTTR stock.
OTTR iron condor setup
The OTTR 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 OTTR near $88.14, the first option leg uses a $92.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OTTR 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 OTTR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $92.55 | N/A |
| Buy 1 | Call | $96.95 | N/A |
| Sell 1 | Put | $83.73 | N/A |
| Buy 1 | Put | $79.33 | N/A |
OTTR 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.
OTTR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on OTTR. 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 OTTR
Iron condors on OTTR are a delta-neutral premium-collection structure that profits if OTTR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
OTTR thesis for this iron condor
The market-implied 1-standard-deviation range for OTTR extends from approximately $83.21 on the downside to $93.07 on the upside. A OTTR iron condor is a delta-neutral premium-collection structure that pays off when OTTR 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 OTTR IV rank near 65.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on OTTR should anchor more to the directional view and the expected-move geometry. As a Utilities name, OTTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OTTR-specific events.
OTTR 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. OTTR positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OTTR alongside the broader basket even when OTTR-specific fundamentals are unchanged. Short-premium structures like a iron condor on OTTR carry tail risk when realized volatility exceeds the implied move; review historical OTTR earnings reactions and macro stress periods before sizing. Always rebuild the position from current OTTR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on OTTR?
- A iron condor on OTTR is the iron condor strategy applied to OTTR (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 OTTR stock trading near $88.14, the strikes shown on this page are snapped to the nearest listed OTTR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OTTR 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 OTTR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 326.10%), 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 OTTR iron condor?
- The breakeven for the OTTR 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 OTTR market-implied 1-standard-deviation expected move is approximately 5.60%; 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 OTTR?
- Iron condors on OTTR are a delta-neutral premium-collection structure that profits if OTTR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current OTTR implied volatility affect this iron condor?
- OTTR ATM IV is at 326.10% with IV rank near 65.59%, 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.