How are TKO 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 TKO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $277.50 per contract and the computed maximum loss is -$722.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TKO iron condor?

The breakeven for the TKO iron condor priced on this page is roughly $177.23 and $202.78 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 TKO market-implied 1-standard-deviation expected move is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TKO implied volatility affect this iron condor?

TKO ATM IV is at 34.90% with IV rank near 36.19%, 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.

TKO Iron Condor Strategy

TKO (TKO Group Holdings, Inc.), in the Communication Services sector, (Entertainment industry), listed on NYSE.

TKO Group Holdings, Inc. operates as a sports and entertainment company. It operates through four segments: Media and Content, Live Events, Sponsorships, and Consumer Products Licensing. The company produces live events, television programs, and long-form and short-form video content across various platforms, including broadcast, pay television, and streaming, as well as digital and social media across approximately 170 countries. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. The company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. TKO Group Holdings, Inc. is based in New York, New York.

TKO (TKO Group Holdings, Inc.) trades in the Communication Services sector, specifically Entertainment, with a market capitalization of approximately $13.77B, a trailing P/E of 62.76, a beta of 0.60 versus the broader market, a 52-week range of 152.29-226.94, average daily share volume of 1.4M, a public-listing history dating back to 2023, approximately 4K full-time employees. These structural characteristics shape how TKO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates TKO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 62.76 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. TKO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on TKO?

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 TKO snapshot

As of May 15, 2026, spot at $189.11, ATM IV 34.90%, IV rank 36.19%, expected move 10.01%. The iron condor on TKO 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 TKO specifically: TKO IV at 34.90% is mid-range versus its 1-year history, so the credit collected on a TKO iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.01% (roughly $18.92 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 TKO expiries trade a higher absolute premium for lower per-day decay. Position sizing on TKO should anchor to the underlying notional of $189.11 per share and to the trader's directional view on TKO stock.

TKO iron condor setup

The TKO 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 TKO near $189.11, 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 TKO 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 TKO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$200.00	$3.68
Buy 1	Call	$210.00	$3.05
Sell 1	Put	$180.00	$4.40
Buy 1	Put	$170.00	$2.25

TKO iron condor risk and reward

Net Premium / Debit: +$277.50
Max Profit (per contract): $277.50
Max Loss (per contract): -$722.50
Breakeven(s): $177.23, $202.78
Risk / Reward Ratio: 0.384

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.

TKO iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on TKO. 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%	-$722.50
$41.82	-77.9%	-$722.50
$83.63	-55.8%	-$722.50
$125.45	-33.7%	-$722.50
$167.26	-11.6%	-$722.50
$209.07	+10.6%	-$629.58
$250.88	+32.7%	-$722.50
$292.70	+54.8%	-$722.50
$334.51	+76.9%	-$722.50
$376.32	+99.0%	-$722.50

When traders use iron condor on TKO

Iron condors on TKO are a delta-neutral premium-collection structure that profits if TKO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

TKO thesis for this iron condor

The market-implied 1-standard-deviation range for TKO extends from approximately $170.19 on the downside to $208.03 on the upside. A TKO iron condor is a delta-neutral premium-collection structure that pays off when TKO 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 TKO IV rank near 36.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on TKO should anchor more to the directional view and the expected-move geometry. As a Communication Services name, TKO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TKO-specific events.

TKO 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. TKO positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TKO alongside the broader basket even when TKO-specific fundamentals are unchanged. Short-premium structures like a iron condor on TKO carry tail risk when realized volatility exceeds the implied move; review historical TKO earnings reactions and macro stress periods before sizing. Always rebuild the position from current TKO chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on TKO?: A iron condor on TKO is the iron condor strategy applied to TKO (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 TKO stock trading near $189.11, the strikes shown on this page are snapped to the nearest listed TKO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TKO 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 TKO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $277.50 per contract and the computed maximum loss is -$722.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TKO iron condor?: The breakeven for the TKO iron condor priced on this page is roughly $177.23 and $202.78 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 TKO market-implied 1-standard-deviation expected move is approximately 10.01%; 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 TKO?: Iron condors on TKO are a delta-neutral premium-collection structure that profits if TKO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current TKO implied volatility affect this iron condor?: TKO ATM IV is at 34.90% with IV rank near 36.19%, 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.