BHR Iron Condor Strategy
BHR (Braemar Hotels & Resorts Inc.), in the Real Estate sector, (REIT - Hotel & Motel industry), listed on NYSE.
Braemar Hotels & Resorts operates as a real estate investment trust (REIT), primarily dedicating its resources to the acquisition and development of high-end hotel and resort properties.
BHR (Braemar Hotels & Resorts Inc.) trades in the Real Estate sector, specifically REIT - Hotel & Motel, with a market capitalization of approximately $139.4M, a beta of 0.82 versus the broader market, a 52-week range of 1.88-3.19, average daily share volume of 514K, a public-listing history dating back to 2013, approximately 116 full-time employees. These structural characteristics shape how BHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places BHR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BHR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on BHR?
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.
BHR snapshot
As of August 14, 2026, spot at $2.04, ATM IV 129.80%, IV rank 24.86%, expected move 37.21%. The iron condor on BHR below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on BHR specifically: BHR IV at 129.80% is on the cheap side of its 1-year range, which means a premium-selling BHR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 37.21% (roughly $0.76 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHR should anchor to the underlying notional of $2.04 per share and to the trader's directional view on BHR stock.
BHR iron condor setup
The BHR 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 BHR at $2.04 on that close, the first option leg uses a $2.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHR chain at a 35-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 BHR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $2.14 | N/A |
| Buy 1 | Call | $2.24 | N/A |
| Sell 1 | Put | $1.94 | N/A |
| Buy 1 | Put | $1.84 | N/A |
BHR 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.
BHR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on BHR. 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 BHR
Iron condors on BHR are a delta-neutral premium-collection structure that profits if BHR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
BHR thesis for this iron condor
The market-implied 1-standard-deviation range for BHR extends from approximately $1.28 on the downside to $2.80 on the upside. A BHR iron condor is a delta-neutral premium-collection structure that pays off when BHR 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 BHR IV rank near 24.86% 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 BHR at 129.80%. As a Real Estate name, BHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHR-specific events.
BHR 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. BHR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BHR alongside the broader basket even when BHR-specific fundamentals are unchanged. Short-premium structures like a iron condor on BHR carry tail risk when realized volatility exceeds the implied move; review historical BHR earnings reactions and macro stress periods before sizing. Always rebuild the position from current BHR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on BHR?
- A iron condor on BHR is the iron condor strategy applied to BHR (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 BHR stock at $2.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed BHR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BHR 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 BHR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 129.80%), 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 BHR iron condor?
- The breakeven for the BHR iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 BHR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.21%; 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 BHR?
- Iron condors on BHR are a delta-neutral premium-collection structure that profits if BHR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current BHR implied volatility affect this iron condor?
- BHR ATM IV is at 129.80% with IV rank near 24.86%, 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.