How are XHB 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 XHB iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.37%), the computed maximum profit is $113.50 per contract and the computed maximum loss is -$486.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XHB iron condor?

The breakeven for the XHB iron condor priced on this page is roughly $102.37 and $115.14 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XHB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XHB implied volatility affect this iron condor?

XHB ATM IV is at 27.37% with IV rank near 20.80%, 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.

XHB Iron Condor Strategy

XHB (State Street SPDR S&P Homebuilders ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

In seeking to track the performance of the S&P Homebuilders Select Industry Index (the "index"), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the homebuilders segment of the S&P Total Market Index ("S&P TMI").

XHB (State Street SPDR S&P Homebuilders ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.51B, a beta of 1.42 versus the broader market, a 52-week range of 93.57-123.13, average daily share volume of 2.5M, a public-listing history dating back to 2006. These structural characteristics shape how XHB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.42 indicates XHB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. XHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on XHB?

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.

XHB snapshot

As of August 14, 2026, spot at $108.89, ATM IV 27.37%, IV rank 20.80%, expected move 7.85%. The iron condor on XHB below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this iron condor structure on XHB specifically: XHB IV at 27.37% is on the cheap side of its 1-year range, which means a premium-selling XHB iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.85% (roughly $8.54 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on XHB should anchor to the underlying notional of $108.89 per share and to the trader's directional view on XHB etf.

XHB iron condor setup

The XHB iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With XHB at $108.89 on that close, the first option leg uses a $114.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XHB chain at a 28-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 XHB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$114.00	$1.52
Buy 1	Call	$120.00	$1.31
Sell 1	Put	$103.50	$1.33
Buy 1	Put	$98.00	$0.41

XHB iron condor risk and reward

Net Premium / Debit: +$113.50
Max Profit (per contract): $113.50
Max Loss (per contract): -$486.50
Breakeven(s): $102.37, $115.14
Risk / Reward Ratio: 0.233

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.

XHB iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on XHB. 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%	-$436.50
$24.09	-77.9%	-$436.50
$48.16	-55.8%	-$436.50
$72.24	-33.7%	-$436.50
$96.31	-11.6%	-$436.50
$120.39	+10.6%	-$486.50
$144.46	+32.7%	-$486.50
$168.54	+54.8%	-$486.50
$192.61	+76.9%	-$486.50
$216.69	+99.0%	-$486.50

When traders use iron condor on XHB

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

XHB thesis for this iron condor

The market-implied 1-standard-deviation range for XHB extends from approximately $100.35 on the downside to $117.43 on the upside. A XHB iron condor is a delta-neutral premium-collection structure that pays off when XHB 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 XHB IV rank near 20.80% 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 XHB at 27.37%. As a Financial Services name, XHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XHB-specific events.

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

Frequently asked questions

What is a iron condor on XHB?: A iron condor on XHB is the iron condor strategy applied to XHB (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 XHB etf at $108.89 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed XHB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are XHB 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 XHB iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.37%), the computed maximum profit is $113.50 per contract and the computed maximum loss is -$486.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XHB iron condor?: The breakeven for the XHB iron condor priced on this page is roughly $102.37 and $115.14 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XHB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.85%; 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 XHB?: Iron condors on XHB are a delta-neutral premium-collection structure that profits if XHB etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current XHB implied volatility affect this iron condor?: XHB ATM IV is at 27.37% with IV rank near 20.80%, 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.