CHCT Strangle Strategy

CHCT (Community Healthcare Trust Incorporated), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.

CHCT (Community Healthcare Trust Incorporated) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $485.7M, a trailing P/E of 75.73, a beta of 0.71 versus the broader market, a 52-week range of 13.23-18.22, average daily share volume of 270K, a public-listing history dating back to 2015, approximately 36 full-time employees. These structural characteristics shape how CHCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places CHCT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 75.73 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CHCT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on CHCT?

A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.

Current CHCT snapshot

As of May 15, 2026, spot at $16.91, ATM IV 52.80%, IV rank 13.21%, expected move 15.14%. The strangle on CHCT 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 strangle structure on CHCT specifically: CHCT IV at 52.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CHCT strangle, with a market-implied 1-standard-deviation move of approximately 15.14% (roughly $2.56 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 CHCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHCT should anchor to the underlying notional of $16.91 per share and to the trader's directional view on CHCT stock.

CHCT strangle setup

The CHCT strangle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CHCT near $16.91, the first option leg uses a $17.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHCT 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 CHCT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.76	N/A
Buy 1	Put	$16.06	N/A

CHCT strangle 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

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.

CHCT strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CHCT. 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 strangle on CHCT

Strangles on CHCT are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the CHCT chain.

CHCT thesis for this strangle

The market-implied 1-standard-deviation range for CHCT extends from approximately $14.35 on the downside to $19.47 on the upside. A CHCT long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current CHCT IV rank near 13.21% 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 CHCT at 52.80%. As a Real Estate name, CHCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHCT-specific events.

CHCT strangle positions are structurally neutral / high-volatility (long premium, OTM); 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. CHCT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHCT alongside the broader basket even when CHCT-specific fundamentals are unchanged. Always rebuild the position from current CHCT chain quotes before placing a trade.

Frequently asked questions

What is a strangle on CHCT?: A strangle on CHCT is the strangle strategy applied to CHCT (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With CHCT stock trading near $16.91, the strikes shown on this page are snapped to the nearest listed CHCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHCT strangle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the CHCT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 52.80%), 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 CHCT strangle?: The breakeven for the CHCT strangle 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 CHCT market-implied 1-standard-deviation expected move is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CHCT?: Strangles on CHCT are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the CHCT chain.
How does current CHCT implied volatility affect this strangle?: CHCT ATM IV is at 52.80% with IV rank near 13.21%, 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.