HMN Iron Condor Strategy
HMN (Horace Mann Educators Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. It operates in three segments: Property & Casualty, Life & Retirement, and Supplemental & Group Benefits. The company underwrites and markets personal lines of property and casualty insurance, including personal lines auto and property insurance products; supplemental insurance products, which include cancer, heart, hospital, supplemental disability, and accident coverages; retirement products, such as tax-qualified fixed and variable annuities; and life insurance products comprising whole life and term, as well as indexed universal life insurance products. It also offers student loan solutions, including online student loan management accounts for educators. The company markets its products through its sales force of full-time exclusive agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.
HMN (Horace Mann Educators Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $1.78B, a trailing P/E of 11.00, a beta of 0.13 versus the broader market, a 52-week range of 40.04-48.33, average daily share volume of 234K, a public-listing history dating back to 1991, approximately 2K full-time employees. These structural characteristics shape how HMN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.13 indicates HMN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.00 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HMN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on HMN?
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 HMN snapshot
As of May 15, 2026, spot at $45.10, ATM IV 50.70%, IV rank 17.64%, expected move 14.54%. The iron condor on HMN 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 HMN specifically: HMN IV at 50.70% is on the cheap side of its 1-year range, which means a premium-selling HMN iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.54% (roughly $6.56 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 HMN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HMN should anchor to the underlying notional of $45.10 per share and to the trader's directional view on HMN stock.
HMN iron condor setup
The HMN 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 HMN near $45.10, the first option leg uses a $47.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HMN 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 HMN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $47.36 | N/A |
| Buy 1 | Call | $49.61 | N/A |
| Sell 1 | Put | $42.85 | N/A |
| Buy 1 | Put | $40.59 | N/A |
HMN 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.
HMN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HMN. 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 HMN
Iron condors on HMN are a delta-neutral premium-collection structure that profits if HMN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HMN thesis for this iron condor
The market-implied 1-standard-deviation range for HMN extends from approximately $38.54 on the downside to $51.66 on the upside. A HMN iron condor is a delta-neutral premium-collection structure that pays off when HMN 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 HMN IV rank near 17.64% 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 HMN at 50.70%. As a Financial Services name, HMN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HMN-specific events.
HMN 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. HMN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HMN alongside the broader basket even when HMN-specific fundamentals are unchanged. Short-premium structures like a iron condor on HMN carry tail risk when realized volatility exceeds the implied move; review historical HMN earnings reactions and macro stress periods before sizing. Always rebuild the position from current HMN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HMN?
- A iron condor on HMN is the iron condor strategy applied to HMN (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 HMN stock trading near $45.10, the strikes shown on this page are snapped to the nearest listed HMN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HMN 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 HMN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 50.70%), 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 HMN iron condor?
- The breakeven for the HMN 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 HMN market-implied 1-standard-deviation expected move is approximately 14.54%; 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 HMN?
- Iron condors on HMN are a delta-neutral premium-collection structure that profits if HMN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HMN implied volatility affect this iron condor?
- HMN ATM IV is at 50.70% with IV rank near 17.64%, 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.