HRTG Straddle Strategy
HRTG (Heritage Insurance Holdings, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, and emergency and recovery services; and property management, and reinsurance services. The company writes personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through eight wholesale agency relationships; and personal and commercial insurance policies through a network of approximately 70 independent agencies. Heritage Insurance Holdings, Inc. was founded in 2012 and is headquartered in Tampa, Florida.
HRTG (Heritage Insurance Holdings, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $668.3M, a trailing P/E of 3.35, a beta of 1.03 versus the broader market, a 52-week range of 16.825-31.98, average daily share volume of 351K, a public-listing history dating back to 2014, approximately 540 full-time employees. These structural characteristics shape how HRTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places HRTG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.35 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a straddle on HRTG?
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 HRTG snapshot
As of May 15, 2026, spot at $23.43, ATM IV 51.60%, IV rank 31.21%, expected move 14.79%. The straddle on HRTG 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 HRTG specifically: HRTG IV at 51.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 14.79% (roughly $3.47 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 HRTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRTG should anchor to the underlying notional of $23.43 per share and to the trader's directional view on HRTG stock.
HRTG straddle setup
The HRTG 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 HRTG near $23.43, the first option leg uses a $23.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRTG 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 HRTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.43 | N/A |
| Buy 1 | Put | $23.43 | N/A |
HRTG 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.
HRTG straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on HRTG. 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 HRTG
Straddles on HRTG are pure-volatility plays that profit from large moves in either direction; traders typically buy HRTG straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
HRTG thesis for this straddle
The market-implied 1-standard-deviation range for HRTG extends from approximately $19.96 on the downside to $26.90 on the upside. A HRTG 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 HRTG IV rank near 31.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on HRTG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HRTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRTG-specific events.
HRTG 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. HRTG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRTG alongside the broader basket even when HRTG-specific fundamentals are unchanged. Always rebuild the position from current HRTG chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on HRTG?
- A straddle on HRTG is the straddle strategy applied to HRTG (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 HRTG stock trading near $23.43, the strikes shown on this page are snapped to the nearest listed HRTG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HRTG 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 HRTG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 51.60%), 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 HRTG straddle?
- The breakeven for the HRTG 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 HRTG market-implied 1-standard-deviation expected move is approximately 14.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on HRTG?
- Straddles on HRTG are pure-volatility plays that profit from large moves in either direction; traders typically buy HRTG 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 HRTG implied volatility affect this straddle?
- HRTG ATM IV is at 51.60% with IV rank near 31.21%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.