HRMY Iron Condor Strategy
HRMY (Harmony Biosciences Holdings, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Harmony Biosciences Holdings, Inc. is a commercial-stage pharmaceutical firm dedicated to developing and marketing therapies for individuals in the United States who suffer from rare neurological conditions. Their flagship product, WAKIX, is a prescription medication designed to treat excessive daytime sleepiness in adult patients diagnosed with narcolepsy. The company, which was founded in 2017, was formerly known as Harmony Biosciences II, Inc. before adopting its current name in February 2020. Harmony Biosciences Holdings, Inc. operates out of Plymouth Meeting, Pennsylvania.
HRMY (Harmony Biosciences Holdings, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.30B, a trailing P/E of 12.70, a beta of 0.91 versus the broader market, a 52-week range of 25.52-40.87, average daily share volume of 854K, a public-listing history dating back to 2020, approximately 293 full-time employees. These structural characteristics shape how HRMY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places HRMY 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 HRMY?
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.
HRMY snapshot
As of August 14, 2026, spot at $38.05, ATM IV 55.00%, IV rank 20.01%, expected move 15.77%. The iron condor on HRMY below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on HRMY specifically: HRMY IV at 55.00% is on the cheap side of its 1-year range, which means a premium-selling HRMY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.77% (roughly $6.00 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HRMY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRMY should anchor to the underlying notional of $38.05 per share and to the trader's directional view on HRMY stock.
HRMY iron condor setup
The HRMY 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 HRMY at $38.05 on that close, the first option leg uses a $39.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRMY chain at a 35-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 HRMY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $39.95 | N/A |
| Buy 1 | Call | $41.86 | N/A |
| Sell 1 | Put | $36.15 | N/A |
| Buy 1 | Put | $34.25 | N/A |
HRMY 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.
HRMY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HRMY. 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 HRMY
Iron condors on HRMY are a delta-neutral premium-collection structure that profits if HRMY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HRMY thesis for this iron condor
The market-implied 1-standard-deviation range for HRMY extends from approximately $32.05 on the downside to $44.05 on the upside. A HRMY iron condor is a delta-neutral premium-collection structure that pays off when HRMY 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 HRMY IV rank near 20.01% 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 HRMY at 55.00%. As a Healthcare name, HRMY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRMY-specific events.
HRMY 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. HRMY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRMY alongside the broader basket even when HRMY-specific fundamentals are unchanged. Short-premium structures like a iron condor on HRMY carry tail risk when realized volatility exceeds the implied move; review historical HRMY earnings reactions and macro stress periods before sizing. Always rebuild the position from current HRMY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HRMY?
- A iron condor on HRMY is the iron condor strategy applied to HRMY (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 HRMY stock at $38.05 on the most recent close, the strikes shown on this page are snapped to the nearest listed HRMY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HRMY 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 HRMY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 55.00%), 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 HRMY iron condor?
- The breakeven for the HRMY iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HRMY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.77%; 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 HRMY?
- Iron condors on HRMY are a delta-neutral premium-collection structure that profits if HRMY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HRMY implied volatility affect this iron condor?
- HRMY ATM IV is at 55.00% with IV rank near 20.01%, 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.