WMS Iron Condor Strategy
WMS (Advanced Drainage Systems, Inc.), in the Industrials sector, (Construction industry), listed on NYSE.
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aeration wastewater solutions, septic tanks and accessories, and combined treatment and dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 38 distribution centers. The company was incorporated in 1966 and is headquartered in Hilliard, Ohio.
WMS (Advanced Drainage Systems, Inc.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $10.74B, a trailing P/E of 22.78, a beta of 1.33 versus the broader market, a 52-week range of 104.69-179.315, average daily share volume of 867K, a public-listing history dating back to 2014, approximately 6K full-time employees. These structural characteristics shape how WMS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates WMS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WMS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on WMS?
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 WMS snapshot
As of May 15, 2026, spot at $135.95, ATM IV 51.50%, IV rank 47.31%, expected move 14.76%. The iron condor on WMS 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 WMS specifically: WMS IV at 51.50% is mid-range versus its 1-year history, so the credit collected on a WMS iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.76% (roughly $20.07 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 WMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WMS should anchor to the underlying notional of $135.95 per share and to the trader's directional view on WMS stock.
WMS iron condor setup
The WMS 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 WMS near $135.95, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WMS 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 WMS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $145.00 | $5.70 |
| Buy 1 | Call | $150.00 | $3.80 |
| Sell 1 | Put | $130.00 | $5.45 |
| Buy 1 | Put | $120.00 | $3.15 |
WMS iron condor risk and reward
- Net Premium / Debit
- +$420.00
- Max Profit (per contract)
- $420.00
- Max Loss (per contract)
- -$580.00
- Breakeven(s)
- $125.80, $149.27
- Risk / Reward Ratio
- 0.724
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.
WMS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on WMS. 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% | -$580.00 |
| $30.07 | -77.9% | -$580.00 |
| $60.13 | -55.8% | -$580.00 |
| $90.18 | -33.7% | -$580.00 |
| $120.24 | -11.6% | -$555.72 |
| $150.30 | +10.6% | -$80.00 |
| $180.36 | +32.7% | -$80.00 |
| $210.42 | +54.8% | -$80.00 |
| $240.48 | +76.9% | -$80.00 |
| $270.53 | +99.0% | -$80.00 |
When traders use iron condor on WMS
Iron condors on WMS are a delta-neutral premium-collection structure that profits if WMS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
WMS thesis for this iron condor
The market-implied 1-standard-deviation range for WMS extends from approximately $115.88 on the downside to $156.02 on the upside. A WMS iron condor is a delta-neutral premium-collection structure that pays off when WMS 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 WMS IV rank near 47.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on WMS should anchor more to the directional view and the expected-move geometry. As a Industrials name, WMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WMS-specific events.
WMS 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. WMS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WMS alongside the broader basket even when WMS-specific fundamentals are unchanged. Short-premium structures like a iron condor on WMS carry tail risk when realized volatility exceeds the implied move; review historical WMS earnings reactions and macro stress periods before sizing. Always rebuild the position from current WMS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on WMS?
- A iron condor on WMS is the iron condor strategy applied to WMS (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 WMS stock trading near $135.95, the strikes shown on this page are snapped to the nearest listed WMS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WMS 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 WMS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 51.50%), the computed maximum profit is $420.00 per contract and the computed maximum loss is -$580.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WMS iron condor?
- The breakeven for the WMS iron condor priced on this page is roughly $125.80 and $149.27 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 WMS market-implied 1-standard-deviation expected move is approximately 14.76%; 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 WMS?
- Iron condors on WMS are a delta-neutral premium-collection structure that profits if WMS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current WMS implied volatility affect this iron condor?
- WMS ATM IV is at 51.50% with IV rank near 47.31%, 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.