SRCE Iron Condor Strategy
SRCE (1st Source Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
As the parent company of 1st Source Bank, 1st Source Corporation delivers a comprehensive suite of financial solutions, encompassing commercial and retail banking, wealth management, and insurance offerings, to both individual and corporate customers. For individual clients, the bank provides essential services such as checking, savings, certificates of deposit, and individual retirement accounts, complemented by digital conveniences like online and mobile banking. Various lending options are available, including personal loans, home mortgages, and home equity lines of credit, along with financial planning, literacy programs, consultative support, and debit and credit card facilities. Businesses benefit from a range of financial products, including commercial, small business, agricultural, and real estate loans, which support diverse corporate needs from acquiring properties and equipment to financing accounts receivables and renewable energy projects. Additionally, the corporation provides commercial leasing, sophisticated treasury management, and retirement planning solutions. Through its wealth advisory segment, the company delivers trust, investment, agency, and custodial services, encompassing the administration of estates and personal trusts, along with the professional management of investment portfolios for individuals, employee benefit plans, and charitable organizations.
SRCE (1st Source Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.97B, a trailing P/E of 12.38, a beta of 0.58 versus the broader market, a 52-week range of 56.89-86.64, average daily share volume of 139K, a public-listing history dating back to 1983, approximately 1K full-time employees. These structural characteristics shape how SRCE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates SRCE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SRCE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on SRCE?
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 SRCE snapshot
As of June 30, 2026, spot at $81.67, ATM IV 36.90%, IV rank 6.06%, expected move 10.58%. The iron condor on SRCE 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 SRCE specifically: SRCE IV at 36.90% is on the cheap side of its 1-year range, which means a premium-selling SRCE iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.58% (roughly $8.64 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 SRCE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SRCE should anchor to the underlying notional of $81.67 per share and to the trader's directional view on SRCE stock.
SRCE iron condor setup
The SRCE 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 SRCE near $81.67, the first option leg uses a $85.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SRCE 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 SRCE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $85.75 | N/A |
| Buy 1 | Call | $89.84 | N/A |
| Sell 1 | Put | $77.59 | N/A |
| Buy 1 | Put | $73.50 | N/A |
SRCE 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.
SRCE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SRCE. 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 SRCE
Iron condors on SRCE are a delta-neutral premium-collection structure that profits if SRCE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SRCE thesis for this iron condor
The market-implied 1-standard-deviation range for SRCE extends from approximately $73.03 on the downside to $90.31 on the upside. A SRCE iron condor is a delta-neutral premium-collection structure that pays off when SRCE 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 SRCE IV rank near 6.06% 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 SRCE at 36.90%. As a Financial Services name, SRCE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SRCE-specific events.
SRCE 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. SRCE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SRCE alongside the broader basket even when SRCE-specific fundamentals are unchanged. Short-premium structures like a iron condor on SRCE carry tail risk when realized volatility exceeds the implied move; review historical SRCE earnings reactions and macro stress periods before sizing. Always rebuild the position from current SRCE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SRCE?
- A iron condor on SRCE is the iron condor strategy applied to SRCE (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 SRCE stock trading near $81.67, the strikes shown on this page are snapped to the nearest listed SRCE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SRCE 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 SRCE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 36.90%), 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 SRCE iron condor?
- The breakeven for the SRCE 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 SRCE market-implied 1-standard-deviation expected move is approximately 10.58%; 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 SRCE?
- Iron condors on SRCE are a delta-neutral premium-collection structure that profits if SRCE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SRCE implied volatility affect this iron condor?
- SRCE ATM IV is at 36.90% with IV rank near 6.06%, 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.