TKR Iron Condor Strategy
TKR (The Timken Company), in the Industrials sector, (Manufacturing - Tools & Accessories industry), listed on NYSE.
The Timken Company operates globally, specializing in the design, manufacturing, and management of advanced bearings and power transmission solutions. Its business activities are organized into two main divisions: Mobile Industries and Process Industries. The Mobile Industries division delivers a wide array of products, encompassing various bearings, seals, and lubrication systems, in addition to power transmission parts like engineered chains, augers, belts, couplings, clutches, and brakes. This segment also provides related offerings and maintenance support. Its clientele includes original equipment manufacturers (OEMs) and direct users of off-highway machinery in agriculture, construction, mining, outdoor power, and power sports. It also serves the on-highway vehicle sector, covering passenger cars, light and heavy trucks, as well as rail cars and locomotives.
TKR (The Timken Company) trades in the Industrials sector, specifically Manufacturing - Tools & Accessories, with a market capitalization of approximately $9.81B, a trailing P/E of 31.87, a beta of 1.23 versus the broader market, a 52-week range of 70.57-145.61, average daily share volume of 979K, a public-listing history dating back to 1922, approximately 19K full-time employees. These structural characteristics shape how TKR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places TKR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TKR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on TKR?
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 TKR snapshot
As of June 29, 2026, spot at $142.41, ATM IV 44.80%, IV rank 7.23%, expected move 12.84%. The iron condor on TKR 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 18-day expiry.
Why this iron condor structure on TKR specifically: TKR IV at 44.80% is on the cheap side of its 1-year range, which means a premium-selling TKR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.84% (roughly $18.29 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on TKR should anchor to the underlying notional of $142.41 per share and to the trader's directional view on TKR stock.
TKR iron condor setup
The TKR 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 TKR near $142.41, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TKR chain at a 18-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 TKR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $150.00 | $2.50 |
| Buy 1 | Call | $155.00 | $1.73 |
| Sell 1 | Put | $135.00 | $3.10 |
| Buy 1 | Put | $130.00 | $2.34 |
TKR iron condor risk and reward
- Net Premium / Debit
- +$153.50
- Max Profit (per contract)
- $153.50
- Max Loss (per contract)
- -$346.50
- Breakeven(s)
- $133.47, $151.54
- Risk / Reward Ratio
- 0.443
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.
TKR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TKR. 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% | -$346.50 |
| $31.50 | -77.9% | -$346.50 |
| $62.98 | -55.8% | -$346.50 |
| $94.47 | -33.7% | -$346.50 |
| $125.96 | -11.6% | -$346.50 |
| $157.44 | +10.6% | -$346.50 |
| $188.93 | +32.7% | -$346.50 |
| $220.42 | +54.8% | -$346.50 |
| $251.90 | +76.9% | -$346.50 |
| $283.39 | +99.0% | -$346.50 |
When traders use iron condor on TKR
Iron condors on TKR are a delta-neutral premium-collection structure that profits if TKR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TKR thesis for this iron condor
The market-implied 1-standard-deviation range for TKR extends from approximately $124.12 on the downside to $160.70 on the upside. A TKR iron condor is a delta-neutral premium-collection structure that pays off when TKR 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 TKR IV rank near 7.23% 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 TKR at 44.80%. As a Industrials name, TKR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TKR-specific events.
TKR 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. TKR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TKR alongside the broader basket even when TKR-specific fundamentals are unchanged. Short-premium structures like a iron condor on TKR carry tail risk when realized volatility exceeds the implied move; review historical TKR earnings reactions and macro stress periods before sizing. Always rebuild the position from current TKR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TKR?
- A iron condor on TKR is the iron condor strategy applied to TKR (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 TKR stock trading near $142.41, the strikes shown on this page are snapped to the nearest listed TKR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TKR 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 TKR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 44.80%), the computed maximum profit is $153.50 per contract and the computed maximum loss is -$346.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TKR iron condor?
- The breakeven for the TKR iron condor priced on this page is roughly $133.47 and $151.54 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 TKR market-implied 1-standard-deviation expected move is approximately 12.84%; 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 TKR?
- Iron condors on TKR are a delta-neutral premium-collection structure that profits if TKR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TKR implied volatility affect this iron condor?
- TKR ATM IV is at 44.80% with IV rank near 7.23%, 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.