BHB Iron Condor Strategy
BHB (Bar Harbor Bankshares), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Bar Harbor Bankshares acts as the parent organization for Bar Harbor Bank & Trust, which delivers a full spectrum of banking services covering commercial, retail, lending, and wealth management. The bank offers a variety of deposit products, including both interest-bearing and non-interest-bearing checking accounts, savings accounts, money market accounts, time deposits, and certificates of deposit (CDs). Its lending activities cover multiple areas: commercial real estate, providing financing for multi-family dwellings, construction projects, land development, and other business properties; commercial and industrial loans extended to agricultural and various commercial entities, including those with tax-exempt status; residential real estate loans, primarily in the form of mortgages for 1-4 unit homes; and consumer loans, which include home equity loans and lines of credit, auto loans, and other installment financing. Beyond core banking, Bar Harbor Bank & Trust supplies life insurance, annuity, and retirement planning products, alongside general financial planning advice. It also assists clients with third-party investment and insurance solutions. Furthermore, the institution's wealth management division offers trust and estate administration, extensive wealth advisory, and investment management services designed for individuals, businesses, non-profit organizations, and local municipalities.
BHB (Bar Harbor Bankshares) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $654.1M, a trailing P/E of 16.24, a beta of 0.61 versus the broader market, a 52-week range of 28.06-39.67, average daily share volume of 105K, a public-listing history dating back to 1997, approximately 458 full-time employees. These structural characteristics shape how BHB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.61 indicates BHB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on BHB?
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 BHB snapshot
As of June 29, 2026, spot at $38.06, ATM IV 55.50%, IV rank 11.02%, expected move 15.91%. The iron condor on BHB 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 18-day expiry.
Why this iron condor structure on BHB specifically: BHB IV at 55.50% is on the cheap side of its 1-year range, which means a premium-selling BHB iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.91% (roughly $6.06 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHB should anchor to the underlying notional of $38.06 per share and to the trader's directional view on BHB stock.
BHB iron condor setup
The BHB 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 BHB near $38.06, the first option leg uses a $39.96 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHB chain at a 18-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 BHB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $39.96 | N/A |
| Buy 1 | Call | $41.87 | N/A |
| Sell 1 | Put | $36.16 | N/A |
| Buy 1 | Put | $34.25 | N/A |
BHB 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.
BHB iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on BHB. 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 BHB
Iron condors on BHB are a delta-neutral premium-collection structure that profits if BHB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
BHB thesis for this iron condor
The market-implied 1-standard-deviation range for BHB extends from approximately $32.00 on the downside to $44.12 on the upside. A BHB iron condor is a delta-neutral premium-collection structure that pays off when BHB 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 BHB IV rank near 11.02% 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 BHB at 55.50%. As a Financial Services name, BHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHB-specific events.
BHB 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. BHB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BHB alongside the broader basket even when BHB-specific fundamentals are unchanged. Short-premium structures like a iron condor on BHB carry tail risk when realized volatility exceeds the implied move; review historical BHB earnings reactions and macro stress periods before sizing. Always rebuild the position from current BHB chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on BHB?
- A iron condor on BHB is the iron condor strategy applied to BHB (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 BHB stock trading near $38.06, the strikes shown on this page are snapped to the nearest listed BHB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BHB 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 BHB iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 55.50%), 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 BHB iron condor?
- The breakeven for the BHB 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 BHB market-implied 1-standard-deviation expected move is approximately 15.91%; 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 BHB?
- Iron condors on BHB are a delta-neutral premium-collection structure that profits if BHB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current BHB implied volatility affect this iron condor?
- BHB ATM IV is at 55.50% with IV rank near 11.02%, 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.