ACT Iron Condor Strategy
ACT (Enact Holdings, Inc.), in the Financial Services sector, (Insurance - Specialty industry), listed on NASDAQ.
Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company is involved in writing and assuming residential mortgage guaranty insurance. It offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and contract underwriting services for mortgage lenders. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings, Inc.
ACT (Enact Holdings, Inc.) trades in the Financial Services sector, specifically Insurance - Specialty, with a market capitalization of approximately $5.96B, a trailing P/E of 8.93, a beta of 0.50 versus the broader market, a 52-week range of 33.94-44.8, average daily share volume of 310K, a public-listing history dating back to 2021, approximately 421 full-time employees. These structural characteristics shape how ACT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates ACT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.93 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ACT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on ACT?
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 ACT snapshot
As of May 15, 2026, spot at $43.03, ATM IV 44.20%, IV rank 33.36%, expected move 12.67%. The iron condor on ACT 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 ACT specifically: ACT IV at 44.20% is mid-range versus its 1-year history, so the credit collected on a ACT iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.67% (roughly $5.45 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 ACT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACT should anchor to the underlying notional of $43.03 per share and to the trader's directional view on ACT stock.
ACT iron condor setup
The ACT 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 ACT near $43.03, the first option leg uses a $45.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACT 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 ACT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $45.18 | N/A |
| Buy 1 | Call | $47.33 | N/A |
| Sell 1 | Put | $40.88 | N/A |
| Buy 1 | Put | $38.73 | N/A |
ACT 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.
ACT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ACT. 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 ACT
Iron condors on ACT are a delta-neutral premium-collection structure that profits if ACT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ACT thesis for this iron condor
The market-implied 1-standard-deviation range for ACT extends from approximately $37.58 on the downside to $48.48 on the upside. A ACT iron condor is a delta-neutral premium-collection structure that pays off when ACT 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 ACT IV rank near 33.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on ACT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ACT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACT-specific events.
ACT 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. ACT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACT alongside the broader basket even when ACT-specific fundamentals are unchanged. Short-premium structures like a iron condor on ACT carry tail risk when realized volatility exceeds the implied move; review historical ACT earnings reactions and macro stress periods before sizing. Always rebuild the position from current ACT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ACT?
- A iron condor on ACT is the iron condor strategy applied to ACT (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 ACT stock trading near $43.03, the strikes shown on this page are snapped to the nearest listed ACT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACT 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 ACT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 44.20%), 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 ACT iron condor?
- The breakeven for the ACT 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 ACT market-implied 1-standard-deviation expected move is approximately 12.67%; 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 ACT?
- Iron condors on ACT are a delta-neutral premium-collection structure that profits if ACT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ACT implied volatility affect this iron condor?
- ACT ATM IV is at 44.20% with IV rank near 33.36%, 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.