XLE Iron Condor — Nov 20, 2026
Trade Setup
Current Stock Price
$128.00
Entry Price
$128.00
Target Price
$64.00
Stop Loss
$256.00
Expiration
Nov 20, 2026
Suggested Contracts
1
Strike Details
Sell 62P / Buy 57P / Sell 70C / Buy 75C
Risk / Reward
Max Loss
$372.00
Max Profit
$128.00
Analysis
XLE (State Street Energy Select Sector SPDR ETF) presents a iron condor opportunity with elevated implied volatility. IV Rank 65. IV 2667.0% trades 463.0pp above 30-day HV (2204.0%). This setup favors net premium sellers.
Sell the $62 put and the $70 call (both ~15-30 delta), each protected by a long wing. The position profits if XLE closes between the breakevens at expiration. Underlying ~$63.00, 39 DTE. Max profit $128 per contract, max loss $372, 34.4% return on risk, 57% POP. Breakevens at $60.72 and $71.28.
Management: take profit at ~50% of max profit ($64). Cut at 2x credit ($256 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: XLE @ ~$63.00 Expiration: Nov 20, 2026 (39 DTE) Net credit (entry): ~$128.00 per spread Legs:
- Sell XLE Nov 20, 2026 $62 Put (delta -0.21, mid $0.69)
- Buy XLE Nov 20, 2026 $57 Put (delta -0.05, mid $0.13)
- Sell XLE Nov 20, 2026 $70 Call (delta 0.27, mid $0.95)
- Buy XLE Nov 20, 2026 $75 Call (delta 0.09, mid $0.24)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~1.2% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($64). Cut loss if position reaches 2x credit received ($256 loss). Roll if tested with > 14 DTE remaining.