POOL Iron Condor Strategy
POOL (Pool Corporation), in the Industrials sector, (Industrial - Distribution industry), listed on NASDAQ.
Pool Corporation, established in 1993 and based in Covington, Louisiana, serves as a leading wholesale distributor of swimming pool essentials, outdoor living accessories, and related recreational merchandise. Operating extensively across the United States and globally, the company supported its diverse clientele through 410 sales centers spanning North America, Europe, and Australia as of March 2022. Its comprehensive product portfolio encompasses a broad array of upkeep items like chemicals, general provisions, and pool accouterments; components for servicing and replacing critical pool machinery such as purification systems, heating units, circulation pumps, and lighting fixtures; and structural elements including complete fiberglass pools, luxury spas, and comprehensive pre-packaged pool kits designed for both subterranean and elevated installations, encompassing structural walls, liners, support braces, and coping. Furthermore, Pool Corp. supplies diverse pool apparatus and constituent parts vital for both fresh installations and the refurbishment of existing aquatic facilities; irrigation solutions, including integrated system elements and specialized equipment and provisions for professional lawn maintenance; and construction essentials such as concrete, plumbing and electrical infrastructure, a variety of functional and aesthetic pool finishes, decking options, tiles, hardscaping elements, and natural stone for new builds and renovations. The company also offers specialized commercial-grade products, including robust heating units, essential safety apparatus, and industrial-scale pumps and filtration systems, alongside additional recreational and outdoor living items like barbecues and modules for custom outdoor kitchen setups. Pool Corporation's extensive client base includes swimming pool construction and renovation specialists, independent retailers of pool provisions, repair and maintenance enterprises, irrigation and landscape professionals, and institutional clients such as hospitality venues, educational institutions, and public recreational centers.
POOL (Pool Corporation) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $7.27B, a trailing P/E of 18.06, a beta of 1.05 versus the broader market, a 52-week range of 172.68-336.15, average daily share volume of 937K, a public-listing history dating back to 1995, approximately 6K full-time employees. These structural characteristics shape how POOL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places POOL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. POOL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on POOL?
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.
POOL snapshot
As of August 14, 2026, spot at $195.22, ATM IV 34.20%, IV rank 39.91%, expected move 9.80%. The iron condor on POOL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on POOL specifically: POOL IV at 34.20% is mid-range versus its 1-year history, so the credit collected on a POOL iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $19.14 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated POOL expiries trade a higher absolute premium for lower per-day decay. Position sizing on POOL should anchor to the underlying notional of $195.22 per share and to the trader's directional view on POOL stock.
POOL iron condor setup
The POOL iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With POOL at $195.22 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 POOL chain at a 35-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 POOL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $200.00 | $6.85 |
| Buy 1 | Call | $210.00 | $3.75 |
| Sell 1 | Put | $185.00 | $3.85 |
| Buy 1 | Put | $175.00 | $1.60 |
POOL iron condor risk and reward
- Net Premium / Debit
- +$535.00
- Max Profit (per contract)
- $535.00
- Max Loss (per contract)
- -$465.00
- Breakeven(s)
- $179.65, $205.35
- Risk / Reward Ratio
- 1.151
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.
POOL iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on POOL. 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% | -$465.00 |
| $43.17 | -77.9% | -$465.00 |
| $86.34 | -55.8% | -$465.00 |
| $129.50 | -33.7% | -$465.00 |
| $172.66 | -11.6% | -$465.00 |
| $215.83 | +10.6% | -$465.00 |
| $258.99 | +32.7% | -$465.00 |
| $302.15 | +54.8% | -$465.00 |
| $345.31 | +76.9% | -$465.00 |
| $388.48 | +99.0% | -$465.00 |
When traders use iron condor on POOL
Iron condors on POOL are a delta-neutral premium-collection structure that profits if POOL stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
POOL thesis for this iron condor
The market-implied 1-standard-deviation range for POOL extends from approximately $176.08 on the downside to $214.36 on the upside. A POOL iron condor is a delta-neutral premium-collection structure that pays off when POOL 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 POOL IV rank near 39.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on POOL should anchor more to the directional view and the expected-move geometry. As a Industrials name, POOL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to POOL-specific events.
POOL 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. POOL positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move POOL alongside the broader basket even when POOL-specific fundamentals are unchanged. Short-premium structures like a iron condor on POOL carry tail risk when realized volatility exceeds the implied move; review historical POOL earnings reactions and macro stress periods before sizing. Always rebuild the position from current POOL chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on POOL?
- A iron condor on POOL is the iron condor strategy applied to POOL (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 POOL stock at $195.22 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed POOL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are POOL 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 POOL iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $535.00 per contract and the computed maximum loss is -$465.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a POOL iron condor?
- The breakeven for the POOL iron condor priced on this page is roughly $179.65 and $205.35 at expiration, derived from the August 14, 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 POOL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.80%; 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 POOL?
- Iron condors on POOL are a delta-neutral premium-collection structure that profits if POOL stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current POOL implied volatility affect this iron condor?
- POOL ATM IV is at 34.20% with IV rank near 39.91%, 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.