PM Iron Condor Strategy
PM (Philip Morris International Inc.), in the Consumer Defensive sector, (Tobacco industry), listed on NYSE.
Philip Morris International Inc. operates as a tobacco company working to delivers a smoke-free future and evolving portfolio for the long-term to include products outside of the tobacco and nicotine sector. The company's product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products that are sold in markets outside the United States. The company offers its smoke-free products under the HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro, HEETS FROM MARLBORO, Marlboro Dimensions, Marlboro HeatSticks, Parliament HeatSticks, and TEREA brands, as well as the KT&G-licensed brands, Fiit, and Miix. It also sells its products under the Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris brands. In addition, the company owns various cigarette brands, such as Dji Sam Soe, Sampoerna A, and Sampoerna U in Indonesia; and Fortune and Jackpot in the Philippines. The company sells its smoke-free products in 71 markets.
PM (Philip Morris International Inc.) trades in the Consumer Defensive sector, specifically Tobacco, with a market capitalization of approximately $292.87B, a trailing P/E of 26.47, a beta of 0.39 versus the broader market, a 52-week range of 142.11-191.3, average daily share volume of 4.9M, a public-listing history dating back to 2008, approximately 83K full-time employees. These structural characteristics shape how PM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.39 indicates PM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PM?
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 PM snapshot
As of May 15, 2026, spot at $189.72, ATM IV 26.14%, IV rank 34.35%, expected move 7.50%. The iron condor on PM 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 28-day expiry.
Why this iron condor structure on PM specifically: PM IV at 26.14% is mid-range versus its 1-year history, so the credit collected on a PM iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.50% (roughly $14.22 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PM should anchor to the underlying notional of $189.72 per share and to the trader's directional view on PM stock.
PM iron condor setup
The PM 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 PM near $189.72, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PM chain at a 28-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 PM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $200.00 | $1.93 |
| Buy 1 | Call | $210.00 | $0.62 |
| Sell 1 | Put | $180.00 | $2.03 |
| Buy 1 | Put | $170.00 | $1.40 |
PM iron condor risk and reward
- Net Premium / Debit
- +$193.00
- Max Profit (per contract)
- $193.00
- Max Loss (per contract)
- -$807.00
- Breakeven(s)
- $178.07, $201.93
- Risk / Reward Ratio
- 0.239
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.
PM iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PM. 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% | -$807.00 |
| $41.96 | -77.9% | -$807.00 |
| $83.90 | -55.8% | -$807.00 |
| $125.85 | -33.7% | -$807.00 |
| $167.80 | -11.6% | -$807.00 |
| $209.75 | +10.6% | -$781.52 |
| $251.69 | +32.7% | -$807.00 |
| $293.64 | +54.8% | -$807.00 |
| $335.59 | +76.9% | -$807.00 |
| $377.53 | +99.0% | -$807.00 |
When traders use iron condor on PM
Iron condors on PM are a delta-neutral premium-collection structure that profits if PM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PM thesis for this iron condor
The market-implied 1-standard-deviation range for PM extends from approximately $175.50 on the downside to $203.94 on the upside. A PM iron condor is a delta-neutral premium-collection structure that pays off when PM 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 PM IV rank near 34.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on PM should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, PM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PM-specific events.
PM 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. PM positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PM alongside the broader basket even when PM-specific fundamentals are unchanged. Short-premium structures like a iron condor on PM carry tail risk when realized volatility exceeds the implied move; review historical PM earnings reactions and macro stress periods before sizing. Always rebuild the position from current PM chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PM?
- A iron condor on PM is the iron condor strategy applied to PM (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 PM stock trading near $189.72, the strikes shown on this page are snapped to the nearest listed PM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PM 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 PM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 26.14%), the computed maximum profit is $193.00 per contract and the computed maximum loss is -$807.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PM iron condor?
- The breakeven for the PM iron condor priced on this page is roughly $178.07 and $201.93 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 PM market-implied 1-standard-deviation expected move is approximately 7.50%; 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 PM?
- Iron condors on PM are a delta-neutral premium-collection structure that profits if PM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PM implied volatility affect this iron condor?
- PM ATM IV is at 26.14% with IV rank near 34.35%, 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.