IHI Iron Condor Strategy
IHI (iShares U.S. Medical Devices ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares U.S. Medical Devices ETF seeks to track the investment results of an index composed of U.S. equities in the medical devices sector.
IHI (iShares U.S. Medical Devices ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.18B, a beta of 0.94 versus the broader market, a 52-week range of 47.37-64.71, average daily share volume of 2.3M, a public-listing history dating back to 2006. These structural characteristics shape how IHI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places IHI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IHI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on IHI?
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 IHI snapshot
As of May 15, 2026, spot at $48.53, ATM IV 24.10%, IV rank 77.68%, expected move 6.91%. The iron condor on IHI 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 IHI specifically: IHI IV at 24.10% is rich versus its 1-year range, which favors premium-selling structures like a IHI iron condor, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $3.35 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 IHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on IHI should anchor to the underlying notional of $48.53 per share and to the trader's directional view on IHI etf.
IHI iron condor setup
The IHI 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 IHI near $48.53, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IHI 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 IHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $51.00 | $0.43 |
| Buy 1 | Call | $53.00 | $0.20 |
| Sell 1 | Put | $46.00 | $0.50 |
| Buy 1 | Put | $44.00 | $0.25 |
IHI iron condor risk and reward
- Net Premium / Debit
- +$47.50
- Max Profit (per contract)
- $47.50
- Max Loss (per contract)
- -$152.50
- Breakeven(s)
- $45.53, $51.48
- Risk / Reward Ratio
- 0.311
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.
IHI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on IHI. 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% | -$152.50 |
| $10.74 | -77.9% | -$152.50 |
| $21.47 | -55.8% | -$152.50 |
| $32.20 | -33.7% | -$152.50 |
| $42.93 | -11.5% | -$152.50 |
| $53.66 | +10.6% | -$152.50 |
| $64.38 | +32.7% | -$152.50 |
| $75.11 | +54.8% | -$152.50 |
| $85.84 | +76.9% | -$152.50 |
| $96.57 | +99.0% | -$152.50 |
When traders use iron condor on IHI
Iron condors on IHI are a delta-neutral premium-collection structure that profits if IHI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
IHI thesis for this iron condor
The market-implied 1-standard-deviation range for IHI extends from approximately $45.18 on the downside to $51.88 on the upside. A IHI iron condor is a delta-neutral premium-collection structure that pays off when IHI 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 IHI IV rank near 77.68% 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 IHI at 24.10%. As a Financial Services name, IHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IHI-specific events.
IHI 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. IHI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IHI alongside the broader basket even when IHI-specific fundamentals are unchanged. Short-premium structures like a iron condor on IHI carry tail risk when realized volatility exceeds the implied move; review historical IHI earnings reactions and macro stress periods before sizing. Always rebuild the position from current IHI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on IHI?
- A iron condor on IHI is the iron condor strategy applied to IHI (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 IHI etf trading near $48.53, the strikes shown on this page are snapped to the nearest listed IHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IHI 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 IHI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IHI iron condor?
- The breakeven for the IHI iron condor priced on this page is roughly $45.53 and $51.48 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 IHI market-implied 1-standard-deviation expected move is approximately 6.91%; 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 IHI?
- Iron condors on IHI are a delta-neutral premium-collection structure that profits if IHI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current IHI implied volatility affect this iron condor?
- IHI ATM IV is at 24.10% with IV rank near 77.68%, 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.