How are UNP 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 UNP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 29.96%), the computed maximum profit is $681.50 per contract and the computed maximum loss is -$818.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNP iron condor?

The breakeven for the UNP iron condor priced on this page is roughly $253.19 and $291.82 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 UNP market-implied 1-standard-deviation expected move is approximately 8.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNP implied volatility affect this iron condor?

UNP ATM IV is at 29.96% with IV rank near 76.28%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

UNP Iron Condor Strategy

UNP (Union Pacific Corporation), in the Industrials sector, (Railroads industry), listed on NYSE.

Union Pacific Corporation, a prominent American railway enterprise, conducts its primary operations through its subsidiary, Union Pacific Railroad Company. The company provides extensive freight transportation services for a wide array of commodities. Its diverse cargo includes agricultural products like grain, fertilizers, and refrigerated foods; energy resources such as coal, renewables, petroleum, and liquid petroleum gases; and industrial materials encompassing construction products, chemicals, plastics, forest products, metals, ores, soda ash, and sand. Union Pacific also facilitates the movement of finished automobiles, automotive parts, and general merchandise in intermodal containers, serving a varied clientele that spans agricultural processors, energy producers, and industrial manufacturers. As of December 31, 2021, the company's vast rail network stretched 32,452 route miles, strategically connecting major ports along the Pacific and Gulf Coasts with crucial gateways throughout the Midwestern and Eastern United States. Established in 1862, Union Pacific Corporation is headquartered in Omaha, Nebraska.

UNP (Union Pacific Corporation) trades in the Industrials sector, specifically Railroads, with a market capitalization of approximately $159.32B, a trailing P/E of 22.06, a beta of 0.97 versus the broader market, a 52-week range of 210.84-279.7, average daily share volume of 3.0M, a public-listing history dating back to 1980, approximately 30K full-time employees. These structural characteristics shape how UNP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.97 places UNP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UNP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on UNP?

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 UNP snapshot

As of June 29, 2026, spot at $271.79, ATM IV 29.96%, IV rank 76.28%, expected move 8.59%. The iron condor on UNP 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 32-day expiry.

Why this iron condor structure on UNP specifically: UNP IV at 29.96% is rich versus its 1-year range, which favors premium-selling structures like a UNP iron condor, with a market-implied 1-standard-deviation move of approximately 8.59% (roughly $23.35 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UNP expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNP should anchor to the underlying notional of $271.79 per share and to the trader's directional view on UNP stock.

UNP iron condor setup

The UNP 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 UNP near $271.79, the first option leg uses a $285.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNP chain at a 32-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 UNP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$285.00	$4.90
Buy 1	Call	$300.00	$1.98
Sell 1	Put	$260.00	$5.30
Buy 1	Put	$245.00	$1.41

UNP iron condor risk and reward

Net Premium / Debit: +$681.50
Max Profit (per contract): $681.50
Max Loss (per contract): -$818.50
Breakeven(s): $253.19, $291.82
Risk / Reward Ratio: 0.833

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.

UNP iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on UNP. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$818.50
$60.10	-77.9%	-$818.50
$120.20	-55.8%	-$818.50
$180.29	-33.7%	-$818.50
$240.38	-11.6%	-$818.50
$300.48	+10.6%	-$818.50
$360.57	+32.7%	-$818.50
$420.66	+54.8%	-$818.50
$480.76	+76.9%	-$818.50
$540.85	+99.0%	-$818.50

When traders use iron condor on UNP

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

UNP thesis for this iron condor

The market-implied 1-standard-deviation range for UNP extends from approximately $248.44 on the downside to $295.14 on the upside. A UNP iron condor is a delta-neutral premium-collection structure that pays off when UNP 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 UNP IV rank near 76.28% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on UNP at 29.96%. As a Industrials name, UNP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNP-specific events.

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

Frequently asked questions

What is a iron condor on UNP?: A iron condor on UNP is the iron condor strategy applied to UNP (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 UNP stock trading near $271.79, the strikes shown on this page are snapped to the nearest listed UNP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UNP 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 UNP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 29.96%), the computed maximum profit is $681.50 per contract and the computed maximum loss is -$818.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNP iron condor?: The breakeven for the UNP iron condor priced on this page is roughly $253.19 and $291.82 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 UNP market-implied 1-standard-deviation expected move is approximately 8.59%; 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 UNP?: Iron condors on UNP are a delta-neutral premium-collection structure that profits if UNP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current UNP implied volatility affect this iron condor?: UNP ATM IV is at 29.96% with IV rank near 76.28%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.