FHB Iron Condor Strategy
FHB (First Hawaiian, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company accepts various deposit products, including checking and savings accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, and small business loans and leases, as well as commercial lease and auto dealer financing. In addition, the company offers personal installment, credit card, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury, and merchant processing services. It operates a network of 54 branches, which include 49 in Hawaii, 3 in Guam, and 2 in Saipan.
FHB (First Hawaiian, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.18B, a trailing P/E of 11.24, a beta of 0.74 versus the broader market, a 52-week range of 22.645-28.35, average daily share volume of 1.9M, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how FHB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places FHB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.24 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FHB?
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 FHB snapshot
As of May 15, 2026, spot at $26.41, ATM IV 38.00%, IV rank 3.16%, expected move 10.89%. The iron condor on FHB 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 FHB specifically: FHB IV at 38.00% is on the cheap side of its 1-year range, which means a premium-selling FHB iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.89% (roughly $2.88 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 FHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHB should anchor to the underlying notional of $26.41 per share and to the trader's directional view on FHB stock.
FHB iron condor setup
The FHB 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 FHB near $26.41, the first option leg uses a $27.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHB 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 FHB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $27.73 | N/A |
| Buy 1 | Call | $29.05 | N/A |
| Sell 1 | Put | $25.09 | N/A |
| Buy 1 | Put | $23.77 | N/A |
FHB 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.
FHB iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FHB. 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 FHB
Iron condors on FHB are a delta-neutral premium-collection structure that profits if FHB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FHB thesis for this iron condor
The market-implied 1-standard-deviation range for FHB extends from approximately $23.53 on the downside to $29.29 on the upside. A FHB iron condor is a delta-neutral premium-collection structure that pays off when FHB 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 FHB IV rank near 3.16% 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 FHB at 38.00%. As a Financial Services name, FHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHB-specific events.
FHB 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. FHB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHB alongside the broader basket even when FHB-specific fundamentals are unchanged. Short-premium structures like a iron condor on FHB carry tail risk when realized volatility exceeds the implied move; review historical FHB earnings reactions and macro stress periods before sizing. Always rebuild the position from current FHB chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FHB?
- A iron condor on FHB is the iron condor strategy applied to FHB (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 FHB stock trading near $26.41, the strikes shown on this page are snapped to the nearest listed FHB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FHB 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 FHB iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), 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 FHB iron condor?
- The breakeven for the FHB 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 FHB market-implied 1-standard-deviation expected move is approximately 10.89%; 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 FHB?
- Iron condors on FHB are a delta-neutral premium-collection structure that profits if FHB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FHB implied volatility affect this iron condor?
- FHB ATM IV is at 38.00% with IV rank near 3.16%, 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.