TYL Iron Condor Strategy
TYL (Tyler Technologies, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Tyler Technologies, Inc. specializes in delivering comprehensive information management solutions and services tailored for the public sector. Its operations are organized into three primary divisions: Enterprise Software, Appraisal and Tax, and NIC. The company's extensive product portfolio encompasses financial management tools, such as modular fund accounting systems designed for government bodies and non-profit organizations, as well as utility billing platforms for managing both metered and unmetered services. Additionally, Tyler offers solutions that automate a wide array of municipal and county operations, ranging from municipal court and parking ticket administration to animal and business licensing, permits and inspections, code enforcement, citizen complaint resolution, ambulance billing, fleet maintenance, and cemetery records management. Educational institutions, particularly K-12 schools, benefit from their specialized student information and transportation management systems. Furthermore, the company delivers a comprehensive suite of judicial technologies, including systems for court case management, integrated court and law enforcement functions, prosecutor support, and supervision.
TYL (Tyler Technologies, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $13.01B, a trailing P/E of 40.67, a beta of 0.81 versus the broader market, a 52-week range of 270.71-580.48, average daily share volume of 767K, a public-listing history dating back to 1980, approximately 8K full-time employees. These structural characteristics shape how TYL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places TYL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 40.67 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. TYL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on TYL?
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.
TYL snapshot
As of August 14, 2026, spot at $330.41, ATM IV 46.90%, IV rank 60.05%, expected move 13.45%. The iron condor on TYL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on TYL specifically: TYL IV at 46.90% is mid-range versus its 1-year history, so the credit collected on a TYL iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.45% (roughly $44.43 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TYL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TYL should anchor to the underlying notional of $330.41 per share and to the trader's directional view on TYL stock.
TYL iron condor setup
The TYL iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TYL at $330.41 on that close, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TYL chain at a 35-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 TYL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $350.00 | $11.80 |
| Buy 1 | Call | $360.00 | $8.60 |
| Sell 1 | Put | $310.00 | $11.30 |
| Buy 1 | Put | $300.00 | $7.15 |
TYL iron condor risk and reward
- Net Premium / Debit
- +$735.00
- Max Profit (per contract)
- $735.00
- Max Loss (per contract)
- -$265.00
- Breakeven(s)
- $302.65, $357.35
- Risk / Reward Ratio
- 2.774
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.
TYL iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TYL. 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% | -$265.00 |
| $73.06 | -77.9% | -$265.00 |
| $146.12 | -55.8% | -$265.00 |
| $219.17 | -33.7% | -$265.00 |
| $292.23 | -11.6% | -$265.00 |
| $365.28 | +10.6% | -$265.00 |
| $438.34 | +32.7% | -$265.00 |
| $511.39 | +54.8% | -$265.00 |
| $584.44 | +76.9% | -$265.00 |
| $657.50 | +99.0% | -$265.00 |
When traders use iron condor on TYL
Iron condors on TYL are a delta-neutral premium-collection structure that profits if TYL stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TYL thesis for this iron condor
The market-implied 1-standard-deviation range for TYL extends from approximately $285.98 on the downside to $374.84 on the upside. A TYL iron condor is a delta-neutral premium-collection structure that pays off when TYL 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 TYL IV rank near 60.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on TYL should anchor more to the directional view and the expected-move geometry. As a Technology name, TYL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TYL-specific events.
TYL 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. TYL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TYL alongside the broader basket even when TYL-specific fundamentals are unchanged. Short-premium structures like a iron condor on TYL carry tail risk when realized volatility exceeds the implied move; review historical TYL earnings reactions and macro stress periods before sizing. Always rebuild the position from current TYL chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TYL?
- A iron condor on TYL is the iron condor strategy applied to TYL (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 TYL stock at $330.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TYL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TYL 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 TYL iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.90%), the computed maximum profit is $735.00 per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TYL iron condor?
- The breakeven for the TYL iron condor priced on this page is roughly $302.65 and $357.35 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TYL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.45%; 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 TYL?
- Iron condors on TYL are a delta-neutral premium-collection structure that profits if TYL stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TYL implied volatility affect this iron condor?
- TYL ATM IV is at 46.90% with IV rank near 60.05%, 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.