PEG Iron Condor Strategy
PEG (Public Service Enterprise Group Incorporated), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power. The PSE&G segment transmits electricity; distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and energy efficiency and related programs; and offers appliance services and repairs. As of December 31, 2021, it had electric transmission and distribution system of 25,000 circuit miles and 862,000 poles; 56 switching stations with an installed capacity of 39,353 megavolt-amperes (MVA), and 235 substations with an installed capacity of 9,285 MVA; four electric distribution headquarters and five electric sub-headquarters; and 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 58 natural gas metering and regulating stations. Public Service Enterprise Group Incorporated was incorporated in 1985 and is based in Newark, New Jersey.
PEG (Public Service Enterprise Group Incorporated) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $38.48B, a trailing P/E of 17.03, a beta of 0.55 versus the broader market, a 52-week range of 76.6-91.26, average daily share volume of 2.7M, a public-listing history dating back to 1980, approximately 13K full-time employees. These structural characteristics shape how PEG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates PEG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PEG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PEG?
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 PEG snapshot
As of May 15, 2026, spot at $76.54, ATM IV 21.30%, IV rank 22.24%, expected move 6.11%. The iron condor on PEG 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 PEG specifically: PEG IV at 21.30% is on the cheap side of its 1-year range, which means a premium-selling PEG iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.11% (roughly $4.67 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 PEG expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEG should anchor to the underlying notional of $76.54 per share and to the trader's directional view on PEG stock.
PEG iron condor setup
The PEG 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 PEG near $76.54, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEG 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 PEG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $80.00 | $0.60 |
| Buy 1 | Call | $85.00 | $0.18 |
| Sell 1 | Put | $72.50 | $0.83 |
| Buy 1 | Put | $70.00 | $0.45 |
PEG iron condor risk and reward
- Net Premium / Debit
- +$80.00
- Max Profit (per contract)
- $80.00
- Max Loss (per contract)
- -$420.00
- Breakeven(s)
- $71.70, $80.80
- 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.
PEG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PEG. 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% | -$170.00 |
| $16.93 | -77.9% | -$170.00 |
| $33.85 | -55.8% | -$170.00 |
| $50.78 | -33.7% | -$170.00 |
| $67.70 | -11.6% | -$170.00 |
| $84.62 | +10.6% | -$382.16 |
| $101.54 | +32.7% | -$420.00 |
| $118.47 | +54.8% | -$420.00 |
| $135.39 | +76.9% | -$420.00 |
| $152.31 | +99.0% | -$420.00 |
When traders use iron condor on PEG
Iron condors on PEG are a delta-neutral premium-collection structure that profits if PEG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PEG thesis for this iron condor
The market-implied 1-standard-deviation range for PEG extends from approximately $71.87 on the downside to $81.21 on the upside. A PEG iron condor is a delta-neutral premium-collection structure that pays off when PEG 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 PEG IV rank near 22.24% 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 PEG at 21.30%. As a Utilities name, PEG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEG-specific events.
PEG 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. PEG positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PEG alongside the broader basket even when PEG-specific fundamentals are unchanged. Short-premium structures like a iron condor on PEG carry tail risk when realized volatility exceeds the implied move; review historical PEG earnings reactions and macro stress periods before sizing. Always rebuild the position from current PEG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PEG?
- A iron condor on PEG is the iron condor strategy applied to PEG (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 PEG stock trading near $76.54, the strikes shown on this page are snapped to the nearest listed PEG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PEG 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 PEG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 21.30%), the computed maximum profit is $80.00 per contract and the computed maximum loss is -$420.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PEG iron condor?
- The breakeven for the PEG iron condor priced on this page is roughly $71.70 and $80.80 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 PEG market-implied 1-standard-deviation expected move is approximately 6.11%; 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 PEG?
- Iron condors on PEG are a delta-neutral premium-collection structure that profits if PEG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PEG implied volatility affect this iron condor?
- PEG ATM IV is at 21.30% with IV rank near 22.24%, 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.