CHMI Iron Condor Strategy
CHMI (Cherry Hill Mortgage Investment Corporation), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Cherry Hill Mortgage Investment Corporation (CHMI) is a financial entity specializing in residential real estate, dedicated to the acquisition, investment, and oversight of home loan-backed assets across the United States. The company structures its operations across distinct divisions, including Investments in Residential Mortgage-Backed Securities (RMBS), Investments in Servicing Related Assets, and an "All Other" segment. It actively manages a diverse portfolio composed of both RMBS and assets linked to mortgage servicing. For federal income tax purposes, Cherry Hill Mortgage Investment Corporation holds the designation of a real estate investment trust. This status generally exempts the company from federal corporate income taxes, contingent on its distribution of at least 90% of its taxable profits to its investors. Established in 2012, CHMI is headquartered in Farmingdale, New Jersey.
CHMI (Cherry Hill Mortgage Investment Corporation) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $107.3M, a trailing P/E of 6.55, a beta of 1.03 versus the broader market, a 52-week range of 2.17-3.04, average daily share volume of 275K, a public-listing history dating back to 2013, approximately 14 full-time employees. These structural characteristics shape how CHMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places CHMI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.55 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CHMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on CHMI?
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.
CHMI snapshot
As of August 14, 2026, spot at $2.94, ATM IV 22.10%, IV rank 1.30%, expected move 6.34%. The iron condor on CHMI 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 CHMI specifically: CHMI IV at 22.10% is on the cheap side of its 1-year range, which means a premium-selling CHMI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $0.19 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 CHMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHMI should anchor to the underlying notional of $2.94 per share and to the trader's directional view on CHMI stock.
CHMI iron condor setup
The CHMI 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 CHMI at $2.94 on that close, the first option leg uses a $3.09 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHMI 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 CHMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $3.09 | N/A |
| Buy 1 | Call | $3.23 | N/A |
| Sell 1 | Put | $2.79 | N/A |
| Buy 1 | Put | $2.65 | N/A |
CHMI 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.
CHMI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CHMI. 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 CHMI
Iron condors on CHMI are a delta-neutral premium-collection structure that profits if CHMI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CHMI thesis for this iron condor
The market-implied 1-standard-deviation range for CHMI extends from approximately $2.75 on the downside to $3.13 on the upside. A CHMI iron condor is a delta-neutral premium-collection structure that pays off when CHMI 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 CHMI IV rank near 1.30% 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 CHMI at 22.10%. As a Real Estate name, CHMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHMI-specific events.
CHMI 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. CHMI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHMI alongside the broader basket even when CHMI-specific fundamentals are unchanged. Short-premium structures like a iron condor on CHMI carry tail risk when realized volatility exceeds the implied move; review historical CHMI earnings reactions and macro stress periods before sizing. Always rebuild the position from current CHMI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CHMI?
- A iron condor on CHMI is the iron condor strategy applied to CHMI (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 CHMI stock at $2.94 on the most recent close, the strikes shown on this page are snapped to the nearest listed CHMI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CHMI 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 CHMI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), 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 CHMI iron condor?
- The breakeven for the CHMI 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 CHMI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.34%; 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 CHMI?
- Iron condors on CHMI are a delta-neutral premium-collection structure that profits if CHMI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CHMI implied volatility affect this iron condor?
- CHMI ATM IV is at 22.10% with IV rank near 1.30%, 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.