HR Straddle Strategy

HR (Healthcare Realty Trust Incorporated), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2020, the Company owned 211 real estate properties in 24 states totaling 15.5 million square feet and was valued at approximately $5.5 billion. The Company provided leasing and property management services to 11.9 million square feet nationwide.

HR (Healthcare Realty Trust Incorporated) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $7.14B, a beta of 0.82 versus the broader market, a 52-week range of 14.09-20.46, average daily share volume of 3.9M, a public-listing history dating back to 1993, approximately 550 full-time employees. These structural characteristics shape how HR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places HR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on HR?

A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.

Current HR snapshot

As of May 15, 2026, spot at $20.29, ATM IV 407.60%, IV rank 81.95%, expected move 116.86%. The straddle on HR 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 straddle structure on HR specifically: HR IV at 407.60% is rich versus its 1-year range, which makes a premium-buying HR straddle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 116.86% (roughly $23.71 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 HR expiries trade a higher absolute premium for lower per-day decay. Position sizing on HR should anchor to the underlying notional of $20.29 per share and to the trader's directional view on HR stock.

HR straddle setup

The HR straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HR near $20.29, the first option leg uses a $20.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HR 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 HR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.29	N/A
Buy 1	Put	$20.29	N/A

HR straddle 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

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.

HR straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on HR. 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 straddle on HR

Straddles on HR are pure-volatility plays that profit from large moves in either direction; traders typically buy HR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

HR thesis for this straddle

The market-implied 1-standard-deviation range for HR extends from approximately $-3.42 on the downside to $44.00 on the upside. A HR long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current HR IV rank near 81.95% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on HR at 407.60%. As a Real Estate name, HR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HR-specific events.

HR straddle positions are structurally neutral / high-volatility (long premium); 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. HR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HR alongside the broader basket even when HR-specific fundamentals are unchanged. Always rebuild the position from current HR chain quotes before placing a trade.

Frequently asked questions

What is a straddle on HR?: A straddle on HR is the straddle strategy applied to HR (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With HR stock trading near $20.29, the strikes shown on this page are snapped to the nearest listed HR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HR straddle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the HR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 407.60%), 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 HR straddle?: The breakeven for the HR straddle 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 HR market-implied 1-standard-deviation expected move is approximately 116.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on HR?: Straddles on HR are pure-volatility plays that profit from large moves in either direction; traders typically buy HR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
How does current HR implied volatility affect this straddle?: HR ATM IV is at 407.60% with IV rank near 81.95%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.