REX Iron Condor Strategy
REX (REX American Resources Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
REX American Resources Corporation, along with its various subsidiaries, manufactures and distributes ethanol across the United States. The company's product portfolio extends to include corn, distillers grains, industrial-grade corn oil, gasoline, and natural gas. Notably, they also supply dry distillers grains with solubles, an important protein component used in animal feed. Established in 1980, the firm initially operated as REX Stores Corporation before adopting its present name, REX American Resources Corporation, in 2010. Its corporate base is situated in Dayton, Ohio.
REX (REX American Resources Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $1.45B, a trailing P/E of 15.76, a beta of 0.61 versus the broader market, a 52-week range of 24.16-53.36, average daily share volume of 203K, a public-listing history dating back to 1984, approximately 122 full-time employees. These structural characteristics shape how REX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.61 indicates REX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a iron condor on REX?
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 REX snapshot
As of June 30, 2026, spot at $44.88, ATM IV 53.20%, IV rank 8.78%, expected move 15.25%. The iron condor on REX 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 17-day expiry.
Why this iron condor structure on REX specifically: REX IV at 53.20% is on the cheap side of its 1-year range, which means a premium-selling REX iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.25% (roughly $6.85 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REX expiries trade a higher absolute premium for lower per-day decay. Position sizing on REX should anchor to the underlying notional of $44.88 per share and to the trader's directional view on REX stock.
REX iron condor setup
The REX 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 REX near $44.88, the first option leg uses a $47.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REX chain at a 17-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 REX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $47.12 | N/A |
| Buy 1 | Call | $49.37 | N/A |
| Sell 1 | Put | $42.64 | N/A |
| Buy 1 | Put | $40.39 | N/A |
REX iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
REX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on REX. 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.
When traders use iron condor on REX
Iron condors on REX are a delta-neutral premium-collection structure that profits if REX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
REX thesis for this iron condor
The market-implied 1-standard-deviation range for REX extends from approximately $38.03 on the downside to $51.73 on the upside. A REX iron condor is a delta-neutral premium-collection structure that pays off when REX 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 REX IV rank near 8.78% 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 REX at 53.20%. As a Basic Materials name, REX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REX-specific events.
REX 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. REX positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REX alongside the broader basket even when REX-specific fundamentals are unchanged. Short-premium structures like a iron condor on REX carry tail risk when realized volatility exceeds the implied move; review historical REX earnings reactions and macro stress periods before sizing. Always rebuild the position from current REX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on REX?
- A iron condor on REX is the iron condor strategy applied to REX (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 REX stock trading near $44.88, the strikes shown on this page are snapped to the nearest listed REX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REX 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 REX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 53.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a REX iron condor?
- The breakeven for the REX iron condor priced on this page is no defined breakeven on the modeled curve 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 REX market-implied 1-standard-deviation expected move is approximately 15.25%; 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 REX?
- Iron condors on REX are a delta-neutral premium-collection structure that profits if REX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current REX implied volatility affect this iron condor?
- REX ATM IV is at 53.20% with IV rank near 8.78%, 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.