PNW Iron Condor Strategy
PNW (Pinnacle West Capital Corporation), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include approximately 5,814 pole miles of overhead lines and approximately 74 miles of underground lines; and distribution facilities comprise approximately 11,258 miles of overhead lines and approximately 22,821 miles of underground primary cable, as well as owns and maintains 475 transmission and distribution substations. The company also owns or leases approximately 6,323 megawatts of regulated generation capacity. It serves approximately 1.3 million customers. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
PNW (Pinnacle West Capital Corporation) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $12.01B, a trailing P/E of 18.38, a beta of 0.46 versus the broader market, a 52-week range of 85.32-104.92, average daily share volume of 1.3M, a public-listing history dating back to 1961, approximately 94 full-time employees. These structural characteristics shape how PNW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates PNW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PNW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PNW?
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 PNW snapshot
As of May 15, 2026, spot at $98.72, ATM IV 19.90%, IV rank 47.04%, expected move 5.71%. The iron condor on PNW 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 PNW specifically: PNW IV at 19.90% is mid-range versus its 1-year history, so the credit collected on a PNW iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 5.71% (roughly $5.63 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 PNW expiries trade a higher absolute premium for lower per-day decay. Position sizing on PNW should anchor to the underlying notional of $98.72 per share and to the trader's directional view on PNW stock.
PNW iron condor setup
The PNW 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 PNW near $98.72, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PNW 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 PNW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $105.00 | $0.60 |
| Buy 1 | Call | $110.00 | $0.05 |
| Sell 1 | Put | $95.00 | $1.10 |
| Buy 1 | Put | $90.00 | $0.45 |
PNW iron condor risk and reward
- Net Premium / Debit
- +$120.00
- Max Profit (per contract)
- $120.00
- Max Loss (per contract)
- -$380.00
- Breakeven(s)
- $93.80, $106.20
- Risk / Reward Ratio
- 0.316
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.
PNW iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PNW. 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% | -$380.00 |
| $21.84 | -77.9% | -$380.00 |
| $43.66 | -55.8% | -$380.00 |
| $65.49 | -33.7% | -$380.00 |
| $87.32 | -11.6% | -$380.00 |
| $109.14 | +10.6% | -$294.22 |
| $130.97 | +32.7% | -$380.00 |
| $152.80 | +54.8% | -$380.00 |
| $174.62 | +76.9% | -$380.00 |
| $196.45 | +99.0% | -$380.00 |
When traders use iron condor on PNW
Iron condors on PNW are a delta-neutral premium-collection structure that profits if PNW stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PNW thesis for this iron condor
The market-implied 1-standard-deviation range for PNW extends from approximately $93.09 on the downside to $104.35 on the upside. A PNW iron condor is a delta-neutral premium-collection structure that pays off when PNW 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 PNW IV rank near 47.04% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on PNW should anchor more to the directional view and the expected-move geometry. As a Utilities name, PNW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PNW-specific events.
PNW 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. PNW positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PNW alongside the broader basket even when PNW-specific fundamentals are unchanged. Short-premium structures like a iron condor on PNW carry tail risk when realized volatility exceeds the implied move; review historical PNW earnings reactions and macro stress periods before sizing. Always rebuild the position from current PNW chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PNW?
- A iron condor on PNW is the iron condor strategy applied to PNW (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 PNW stock trading near $98.72, the strikes shown on this page are snapped to the nearest listed PNW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PNW 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 PNW iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 19.90%), the computed maximum profit is $120.00 per contract and the computed maximum loss is -$380.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PNW iron condor?
- The breakeven for the PNW iron condor priced on this page is roughly $93.80 and $106.20 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 PNW market-implied 1-standard-deviation expected move is approximately 5.71%; 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 PNW?
- Iron condors on PNW are a delta-neutral premium-collection structure that profits if PNW stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PNW implied volatility affect this iron condor?
- PNW ATM IV is at 19.90% with IV rank near 47.04%, 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.