HCI Iron Condor Strategy
HCI (HCI Group, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Headquartered in Tampa, Florida, HCI Group, Inc., originally established in 2006 as Homeowners Choice, Inc. before its name change in May 2013, is a diversified holding company. It conducts business across four main segments: property and casualty insurance, reinsurance, real estate, and information technology. Within Florida, the company underwrites residential insurance policies for homeowners, condominium owners, and tenants, offering coverage types such as homeowners, fire, flood, and wind-only, alongside reinsurance services. Its real estate portfolio encompasses ownership and management of waterfront properties, retail shopping centers, an office building, and various commercial investment properties. Additionally, HCI Group's technology division designs and builds web-based applications and mobile solutions, including its online policy administration platforms SAMS and Harmony, the end-to-end claims management system ClaimColony, and the mapping and data visualization tool AtlasViewer.
HCI (HCI Group, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $2.30B, a trailing P/E of 6.80, a beta of 1.05 versus the broader market, a 52-week range of 136.37-210.5, average daily share volume of 197K, a public-listing history dating back to 2008, approximately 552 full-time employees. These structural characteristics shape how HCI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places HCI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.80 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HCI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on HCI?
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 HCI snapshot
As of June 30, 2026, spot at $176.97, ATM IV 31.90%, IV rank 1.10%, expected move 9.15%. The iron condor on HCI 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 17-day expiry.
Why this iron condor structure on HCI specifically: HCI IV at 31.90% is on the cheap side of its 1-year range, which means a premium-selling HCI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $16.18 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on HCI should anchor to the underlying notional of $176.97 per share and to the trader's directional view on HCI stock.
HCI iron condor setup
The HCI 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 HCI near $176.97, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HCI chain at a 17-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 HCI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $185.00 | $1.68 |
| Buy 1 | Call | $195.00 | $0.31 |
| Sell 1 | Put | $170.00 | $2.23 |
| Buy 1 | Put | $160.00 | $1.21 |
HCI iron condor risk and reward
- Net Premium / Debit
- +$238.00
- Max Profit (per contract)
- $238.00
- Max Loss (per contract)
- -$762.00
- Breakeven(s)
- $167.62, $187.38
- Risk / Reward Ratio
- 0.312
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.
HCI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HCI. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$762.00 |
| $39.14 | -77.9% | -$762.00 |
| $78.27 | -55.8% | -$762.00 |
| $117.39 | -33.7% | -$762.00 |
| $156.52 | -11.6% | -$762.00 |
| $195.65 | +10.6% | -$762.00 |
| $234.78 | +32.7% | -$762.00 |
| $273.91 | +54.8% | -$762.00 |
| $313.03 | +76.9% | -$762.00 |
| $352.16 | +99.0% | -$762.00 |
When traders use iron condor on HCI
Iron condors on HCI are a delta-neutral premium-collection structure that profits if HCI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HCI thesis for this iron condor
The market-implied 1-standard-deviation range for HCI extends from approximately $160.79 on the downside to $193.15 on the upside. A HCI iron condor is a delta-neutral premium-collection structure that pays off when HCI 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 HCI IV rank near 1.10% 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 HCI at 31.90%. As a Financial Services name, HCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HCI-specific events.
HCI 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. HCI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HCI alongside the broader basket even when HCI-specific fundamentals are unchanged. Short-premium structures like a iron condor on HCI carry tail risk when realized volatility exceeds the implied move; review historical HCI earnings reactions and macro stress periods before sizing. Always rebuild the position from current HCI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HCI?
- A iron condor on HCI is the iron condor strategy applied to HCI (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 HCI stock trading near $176.97, the strikes shown on this page are snapped to the nearest listed HCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HCI 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 HCI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $238.00 per contract and the computed maximum loss is -$762.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HCI iron condor?
- The breakeven for the HCI iron condor priced on this page is roughly $167.62 and $187.38 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 HCI market-implied 1-standard-deviation expected move is approximately 9.15%; 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 HCI?
- Iron condors on HCI are a delta-neutral premium-collection structure that profits if HCI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HCI implied volatility affect this iron condor?
- HCI ATM IV is at 31.90% with IV rank near 1.10%, 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.