HLIT Iron Condor Strategy
HLIT (Harmonic Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Harmonic Inc., together with its subsidiaries, provide video delivery software, products, system solutions, and services worldwide. The company operates in two segments, Video and Cable Access. The Video segment sells video processing, production, and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media, including streaming media companies. This segment's video processing appliance solutions include network management and application software, and hardware products, such as encoders, video servers, high-density stream processing systems, and edge processors. This segment also provides software-as-a-service (SaaS) solutions, which enables the packaging and delivery of streaming services, including live streaming, video-on-demand, catch-up TV, start-over TV, network-DVR, and cloud-DVR services through HTTP streaming to various device along with dynamic and personal ad insertion. The Cable Access segment offers CableOS software-based cable access solutions; and CableOS central cloud services primarily to cable operators.
HLIT (Harmonic Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $1.47B, a beta of 1.24 versus the broader market, a 52-week range of 7.8-15.39, average daily share volume of 1.4M, a public-listing history dating back to 1995, approximately 901 full-time employees. These structural characteristics shape how HLIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places HLIT 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 HLIT?
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 HLIT snapshot
As of May 15, 2026, spot at $12.46, ATM IV 58.20%, IV rank 22.45%, expected move 16.69%. The iron condor on HLIT 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 HLIT specifically: HLIT IV at 58.20% is on the cheap side of its 1-year range, which means a premium-selling HLIT iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.69% (roughly $2.08 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 HLIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLIT should anchor to the underlying notional of $12.46 per share and to the trader's directional view on HLIT stock.
HLIT iron condor setup
The HLIT 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 HLIT near $12.46, the first option leg uses a $13.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLIT 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 HLIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $13.08 | N/A |
| Buy 1 | Call | $13.71 | N/A |
| Sell 1 | Put | $11.84 | N/A |
| Buy 1 | Put | $11.21 | N/A |
HLIT 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.
HLIT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HLIT. 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 HLIT
Iron condors on HLIT are a delta-neutral premium-collection structure that profits if HLIT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HLIT thesis for this iron condor
The market-implied 1-standard-deviation range for HLIT extends from approximately $10.38 on the downside to $14.54 on the upside. A HLIT iron condor is a delta-neutral premium-collection structure that pays off when HLIT 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 HLIT IV rank near 22.45% 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 HLIT at 58.20%. As a Technology name, HLIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLIT-specific events.
HLIT 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. HLIT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HLIT alongside the broader basket even when HLIT-specific fundamentals are unchanged. Short-premium structures like a iron condor on HLIT carry tail risk when realized volatility exceeds the implied move; review historical HLIT earnings reactions and macro stress periods before sizing. Always rebuild the position from current HLIT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HLIT?
- A iron condor on HLIT is the iron condor strategy applied to HLIT (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 HLIT stock trading near $12.46, the strikes shown on this page are snapped to the nearest listed HLIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HLIT 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 HLIT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 58.20%), 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 HLIT iron condor?
- The breakeven for the HLIT 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 HLIT market-implied 1-standard-deviation expected move is approximately 16.69%; 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 HLIT?
- Iron condors on HLIT are a delta-neutral premium-collection structure that profits if HLIT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HLIT implied volatility affect this iron condor?
- HLIT ATM IV is at 58.20% with IV rank near 22.45%, 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.