DH Iron Condor Strategy
DH (Definitive Healthcare Corp.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States. Its solutions provide information on healthcare providers and their activities to help its customers in the area ranging from product development to go-to-market planning, and sales and marketing execution. The company's platform offers 16 intelligence modules that cover functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate companies, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
DH (Definitive Healthcare Corp.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $93.5M, a beta of 1.34 versus the broader market, a 52-week range of 0.881-4.7, average daily share volume of 347K, a public-listing history dating back to 2021, approximately 782 full-time employees. These structural characteristics shape how DH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates DH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a iron condor on DH?
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 DH snapshot
As of May 15, 2026, spot at $0.83, ATM IV 27.40%, IV rank 2.24%, expected move 7.86%. The iron condor on DH 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 DH specifically: DH IV at 27.40% is on the cheap side of its 1-year range, which means a premium-selling DH iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.86% (roughly $0.07 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 DH expiries trade a higher absolute premium for lower per-day decay. Position sizing on DH should anchor to the underlying notional of $0.83 per share and to the trader's directional view on DH stock.
DH iron condor setup
The DH 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 DH near $0.83, the first option leg uses a $0.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DH 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 DH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $0.87 | N/A |
| Buy 1 | Call | $0.91 | N/A |
| Sell 1 | Put | $0.79 | N/A |
| Buy 1 | Put | $0.75 | N/A |
DH 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.
DH iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DH. 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 DH
Iron condors on DH are a delta-neutral premium-collection structure that profits if DH stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DH thesis for this iron condor
The market-implied 1-standard-deviation range for DH extends from approximately $0.76 on the downside to $0.90 on the upside. A DH iron condor is a delta-neutral premium-collection structure that pays off when DH 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 DH IV rank near 2.24% 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 DH at 27.40%. As a Healthcare name, DH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DH-specific events.
DH 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. DH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DH alongside the broader basket even when DH-specific fundamentals are unchanged. Short-premium structures like a iron condor on DH carry tail risk when realized volatility exceeds the implied move; review historical DH earnings reactions and macro stress periods before sizing. Always rebuild the position from current DH chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DH?
- A iron condor on DH is the iron condor strategy applied to DH (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 DH stock trading near $0.83, the strikes shown on this page are snapped to the nearest listed DH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DH 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 DH iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 27.40%), 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 DH iron condor?
- The breakeven for the DH 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 DH market-implied 1-standard-deviation expected move is approximately 7.86%; 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 DH?
- Iron condors on DH are a delta-neutral premium-collection structure that profits if DH stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DH implied volatility affect this iron condor?
- DH ATM IV is at 27.40% with IV rank near 2.24%, 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.