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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.80%), the computed maximum profit is $382.50 per contract and the computed maximum loss is -$617.50 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 $176.18 and $203.83 at expiration, derived from the September 30, 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 PM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PM implied volatility affect this iron condor?

PM ATM IV is at 31.80% with IV rank near 59.39%, 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.

PM Iron Condor Strategy

PM (Philip Morris International Inc.), in the Consumer Defensive sector, (Tobacco industry), listed on NYSE.

Philip Morris International Inc. functions as a prominent tobacco enterprise, actively working toward a smoke-free future. The company is strategically diversifying its long-term product range to incorporate items beyond traditional tobacco and nicotine. Its primary business involves both conventional cigarettes and an expanding array of smoke-free alternatives, such as innovative heat-not-burn devices, vapor products, and oral nicotine solutions. These offerings are distributed in markets worldwide, with the exception of the United States. The smoke-free portfolio includes brands like HEETS (encompassing Creations, Dimensions, Marlboro variants), Parliament HeatSticks, and TEREA, in addition to KT&G-licensed brands Fiit and Miix. For conventional cigarettes, the company sells internationally recognized brands such as Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris.

PM (Philip Morris International Inc.) trades in the Consumer Defensive sector, specifically Tobacco, with a market capitalization of approximately $297.41B, a trailing P/E of 27.42, a beta of 0.40 versus the broader market, a 52-week range of 142.11-207.76, average daily share volume of 4.8M, a public-listing history dating back to 2008, approximately 85K 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 0.40 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.

PM snapshot

As of September 30, 2026, spot at $191.59, ATM IV 31.80%, IV rank 59.39%, expected move 9.12%. The iron condor on PM below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 30-day expiry.

Why this iron condor structure on PM specifically: PM IV at 31.80% 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 9.12% (roughly $17.47 on the underlying). The 30-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 $191.59 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 September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PM at $191.59 on that close, 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 30-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	$3.35
Buy 1	Call	$210.00	$1.28
Sell 1	Put	$180.00	$2.90
Buy 1	Put	$170.00	$1.15

PM iron condor risk and reward

Net Premium / Debit: +$382.50
Max Profit (per contract): $382.50
Max Loss (per contract): -$617.50
Breakeven(s): $176.18, $203.83
Risk / Reward Ratio: 0.619

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$617.50
$42.37	-77.9%	-$617.50
$84.73	-55.8%	-$617.50
$127.09	-33.7%	-$617.50
$169.45	-11.6%	-$617.50
$211.81	+10.6%	-$617.50
$254.17	+32.7%	-$617.50
$296.53	+54.8%	-$617.50
$338.89	+76.9%	-$617.50
$381.25	+99.0%	-$617.50

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 $174.12 on the downside to $209.06 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 59.39% 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 at $191.59 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed PM chain strike and the premiums come straight from that session's 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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.80%), the computed maximum profit is $382.50 per contract and the computed maximum loss is -$617.50 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 $176.18 and $203.83 at expiration, derived from the September 30, 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 PM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.12%; 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 31.80% with IV rank near 59.39%, 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.