HDV Iron Condor Strategy
HDV (iShares Core High Dividend ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares Core High Dividend ETF seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities.
HDV (iShares Core High Dividend ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $13.75B, a beta of 0.37 versus the broader market, a 52-week range of 22.736-28.178, average daily share volume of 3.6M, a public-listing history dating back to 2011. These structural characteristics shape how HDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.37 indicates HDV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on HDV?
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 HDV snapshot
As of May 15, 2026, spot at $27.31, ATM IV 15.80%, IV rank 2.25%, expected move 4.53%. The iron condor on HDV 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 HDV specifically: HDV IV at 15.80% is on the cheap side of its 1-year range, which means a premium-selling HDV iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.53% (roughly $1.24 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 HDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on HDV should anchor to the underlying notional of $27.31 per share and to the trader's directional view on HDV etf.
HDV iron condor setup
The HDV 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 HDV near $27.31, the first option leg uses a $28.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HDV 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 HDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $28.68 | N/A |
| Buy 1 | Call | $30.04 | N/A |
| Sell 1 | Put | $25.94 | N/A |
| Buy 1 | Put | $24.58 | N/A |
HDV iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
HDV iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HDV. 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.
When traders use iron condor on HDV
Iron condors on HDV are a delta-neutral premium-collection structure that profits if HDV etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HDV thesis for this iron condor
The market-implied 1-standard-deviation range for HDV extends from approximately $26.07 on the downside to $28.55 on the upside. A HDV iron condor is a delta-neutral premium-collection structure that pays off when HDV 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 HDV IV rank near 2.25% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on HDV at 15.80%. As a Financial Services name, HDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HDV-specific events.
HDV 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. HDV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HDV alongside the broader basket even when HDV-specific fundamentals are unchanged. Short-premium structures like a iron condor on HDV carry tail risk when realized volatility exceeds the implied move; review historical HDV earnings reactions and macro stress periods before sizing. Always rebuild the position from current HDV chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HDV?
- A iron condor on HDV is the iron condor strategy applied to HDV (etf). 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 HDV etf trading near $27.31, the strikes shown on this page are snapped to the nearest listed HDV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HDV 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 HDV iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 15.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HDV iron condor?
- The breakeven for the HDV iron condor priced on this page is no defined breakeven on the modeled curve 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 HDV market-implied 1-standard-deviation expected move is approximately 4.53%; 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 HDV?
- Iron condors on HDV are a delta-neutral premium-collection structure that profits if HDV etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HDV implied volatility affect this iron condor?
- HDV ATM IV is at 15.80% with IV rank near 2.25%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.