TXRH Iron Condor Strategy
TXRH (Texas Roadhouse, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names. As of December 28, 2021, it operated 566 domestic restaurants and 101 franchise restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
TXRH (Texas Roadhouse, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $11.79B, a trailing P/E of 28.46, a beta of 0.78 versus the broader market, a 52-week range of 153.83-199.99, average daily share volume of 1.1M, a public-listing history dating back to 2004, approximately 95K full-time employees. These structural characteristics shape how TXRH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places TXRH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TXRH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on TXRH?
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 TXRH snapshot
As of May 15, 2026, spot at $177.81, ATM IV 24.16%, IV rank 31.10%, expected move 6.93%. The iron condor on TXRH 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 28-day expiry.
Why this iron condor structure on TXRH specifically: TXRH IV at 24.16% is mid-range versus its 1-year history, so the credit collected on a TXRH iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.93% (roughly $12.32 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TXRH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXRH should anchor to the underlying notional of $177.81 per share and to the trader's directional view on TXRH stock.
TXRH iron condor setup
The TXRH 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 TXRH near $177.81, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXRH chain at a 28-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 TXRH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $185.00 | $2.38 |
| Buy 1 | Call | $195.00 | $1.40 |
| Sell 1 | Put | $170.00 | $2.00 |
| Buy 1 | Put | $160.00 | $0.59 |
TXRH iron condor risk and reward
- Net Premium / Debit
- +$238.50
- Max Profit (per contract)
- $238.50
- Max Loss (per contract)
- -$761.50
- Breakeven(s)
- $167.62, $187.39
- Risk / Reward Ratio
- 0.313
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.
TXRH iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TXRH. 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% | -$761.50 |
| $39.32 | -77.9% | -$761.50 |
| $78.64 | -55.8% | -$761.50 |
| $117.95 | -33.7% | -$761.50 |
| $157.26 | -11.6% | -$761.50 |
| $196.58 | +10.6% | -$761.50 |
| $235.89 | +32.7% | -$761.50 |
| $275.21 | +54.8% | -$761.50 |
| $314.52 | +76.9% | -$761.50 |
| $353.83 | +99.0% | -$761.50 |
When traders use iron condor on TXRH
Iron condors on TXRH are a delta-neutral premium-collection structure that profits if TXRH stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TXRH thesis for this iron condor
The market-implied 1-standard-deviation range for TXRH extends from approximately $165.49 on the downside to $190.13 on the upside. A TXRH iron condor is a delta-neutral premium-collection structure that pays off when TXRH 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 TXRH IV rank near 31.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on TXRH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, TXRH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXRH-specific events.
TXRH 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. TXRH positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TXRH alongside the broader basket even when TXRH-specific fundamentals are unchanged. Short-premium structures like a iron condor on TXRH carry tail risk when realized volatility exceeds the implied move; review historical TXRH earnings reactions and macro stress periods before sizing. Always rebuild the position from current TXRH chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TXRH?
- A iron condor on TXRH is the iron condor strategy applied to TXRH (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 TXRH stock trading near $177.81, the strikes shown on this page are snapped to the nearest listed TXRH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TXRH 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 TXRH iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 24.16%), the computed maximum profit is $238.50 per contract and the computed maximum loss is -$761.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TXRH iron condor?
- The breakeven for the TXRH iron condor priced on this page is roughly $167.62 and $187.39 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 TXRH market-implied 1-standard-deviation expected move is approximately 6.93%; 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 TXRH?
- Iron condors on TXRH are a delta-neutral premium-collection structure that profits if TXRH stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TXRH implied volatility affect this iron condor?
- TXRH ATM IV is at 24.16% with IV rank near 31.10%, 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.