HCSG Iron Condor Strategy
HCSG (Healthcare Services Group, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the client's facility, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at a client's facility. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents. This segment also offers on-site management and clinical consulting services to facilities. As of December 31, 2021, the company provided its services to approximately 3,000 facilities.
HCSG (Healthcare Services Group, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.48B, a trailing P/E of 22.12, a beta of 0.86 versus the broader market, a 52-week range of 12.66-24.39, average daily share volume of 745K, a public-listing history dating back to 1983, approximately 35K full-time employees. These structural characteristics shape how HCSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places HCSG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on HCSG?
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 HCSG snapshot
As of May 15, 2026, spot at $21.37, ATM IV 51.30%, IV rank 8.35%, expected move 14.71%. The iron condor on HCSG 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 HCSG specifically: HCSG IV at 51.30% is on the cheap side of its 1-year range, which means a premium-selling HCSG iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.71% (roughly $3.14 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 HCSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HCSG should anchor to the underlying notional of $21.37 per share and to the trader's directional view on HCSG stock.
HCSG iron condor setup
The HCSG 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 HCSG near $21.37, the first option leg uses a $22.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HCSG 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 HCSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $22.44 | N/A |
| Buy 1 | Call | $23.51 | N/A |
| Sell 1 | Put | $20.30 | N/A |
| Buy 1 | Put | $19.23 | N/A |
HCSG 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.
HCSG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HCSG. 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 HCSG
Iron condors on HCSG are a delta-neutral premium-collection structure that profits if HCSG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HCSG thesis for this iron condor
The market-implied 1-standard-deviation range for HCSG extends from approximately $18.23 on the downside to $24.51 on the upside. A HCSG iron condor is a delta-neutral premium-collection structure that pays off when HCSG 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 HCSG IV rank near 8.35% 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 HCSG at 51.30%. As a Healthcare name, HCSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HCSG-specific events.
HCSG 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. HCSG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HCSG alongside the broader basket even when HCSG-specific fundamentals are unchanged. Short-premium structures like a iron condor on HCSG carry tail risk when realized volatility exceeds the implied move; review historical HCSG earnings reactions and macro stress periods before sizing. Always rebuild the position from current HCSG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HCSG?
- A iron condor on HCSG is the iron condor strategy applied to HCSG (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 HCSG stock trading near $21.37, the strikes shown on this page are snapped to the nearest listed HCSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HCSG 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 HCSG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 51.30%), 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 HCSG iron condor?
- The breakeven for the HCSG 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 HCSG market-implied 1-standard-deviation expected move is approximately 14.71%; 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 HCSG?
- Iron condors on HCSG are a delta-neutral premium-collection structure that profits if HCSG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HCSG implied volatility affect this iron condor?
- HCSG ATM IV is at 51.30% with IV rank near 8.35%, 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.