TEX Iron Condor Strategy
TEX (Terex Corporation), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.
Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Aerial Work Platforms (AWP) and Materials Processing (MP). The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, scissor lifts, utility equipment, and telehandlers, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, utility and telecommunication lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The MP segment's materials processing and specialty equipment includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands and business lines. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries.
TEX (Terex Corporation) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $4.59B, a trailing P/E of 38.40, a beta of 1.57 versus the broader market, a 52-week range of 41.7-71.5, average daily share volume of 1.4M, a public-listing history dating back to 1980, approximately 11K full-time employees. These structural characteristics shape how TEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates TEX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 38.40 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TEX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on TEX?
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 TEX snapshot
As of May 15, 2026, spot at $59.80, ATM IV 49.30%, IV rank 41.78%, expected move 14.13%. The iron condor on TEX 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 63-day expiry.
Why this iron condor structure on TEX specifically: TEX IV at 49.30% is mid-range versus its 1-year history, so the credit collected on a TEX iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.13% (roughly $8.45 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEX should anchor to the underlying notional of $59.80 per share and to the trader's directional view on TEX stock.
TEX iron condor setup
The TEX 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 TEX near $59.80, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEX chain at a 63-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 TEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $65.00 | $3.20 |
| Buy 1 | Call | $65.00 | $3.20 |
| Sell 1 | Put | $55.00 | $2.18 |
| Buy 1 | Put | $55.00 | $2.18 |
TEX iron condor risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- 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.
TEX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TEX. 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% | $0.00 |
| $13.23 | -77.9% | $0.00 |
| $26.45 | -55.8% | $0.00 |
| $39.67 | -33.7% | $0.00 |
| $52.89 | -11.5% | $0.00 |
| $66.12 | +10.6% | $0.00 |
| $79.34 | +32.7% | $0.00 |
| $92.56 | +54.8% | $0.00 |
| $105.78 | +76.9% | $0.00 |
| $119.00 | +99.0% | $0.00 |
When traders use iron condor on TEX
Iron condors on TEX are a delta-neutral premium-collection structure that profits if TEX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TEX thesis for this iron condor
The market-implied 1-standard-deviation range for TEX extends from approximately $51.35 on the downside to $68.25 on the upside. A TEX iron condor is a delta-neutral premium-collection structure that pays off when TEX 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 TEX IV rank near 41.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on TEX should anchor more to the directional view and the expected-move geometry. As a Industrials name, TEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEX-specific events.
TEX 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. TEX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TEX alongside the broader basket even when TEX-specific fundamentals are unchanged. Short-premium structures like a iron condor on TEX carry tail risk when realized volatility exceeds the implied move; review historical TEX earnings reactions and macro stress periods before sizing. Always rebuild the position from current TEX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TEX?
- A iron condor on TEX is the iron condor strategy applied to TEX (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 TEX stock trading near $59.80, the strikes shown on this page are snapped to the nearest listed TEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TEX 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 TEX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TEX iron condor?
- The breakeven for the TEX 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 TEX market-implied 1-standard-deviation expected move is approximately 14.13%; 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 TEX?
- Iron condors on TEX are a delta-neutral premium-collection structure that profits if TEX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TEX implied volatility affect this iron condor?
- TEX ATM IV is at 49.30% with IV rank near 41.78%, 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.