HTO Iron Condor Strategy
HTO (H2O America), in the Utilities sector, (Regulated Water industry), listed on NASDAQ.
H2O America, operating nationwide via its various subsidiaries, is a key provider of essential water utility and associated services. The company manages the entire water lifecycle, from procuring, storing, and purifying water to its distribution, wholesale, and retail sale, alongside offering wastewater management services. Its water supply is diverse, sourced from groundwater wells, surface water collected through watershed runoff and diversions, reclaimed water, and imported water acquired from the Santa Clara Valley Water District. Beyond its primary utility offerings, H2O America also delivers a suite of non-regulated services. These include the management and maintenance of water systems, various contracted services, leasing opportunities for antenna sites, and other water and sewer operational services. A notable offering is the "Linebacker protection plan," specifically tailored for its public drinking water clients in Connecticut and Maine.
HTO (H2O America) trades in the Utilities sector, specifically Regulated Water, with a market capitalization of approximately $2.12B, a trailing P/E of 21.92, a beta of 0.35 versus the broader market, a 52-week range of 43.75-61.87, average daily share volume of 539K, a public-listing history dating back to 1972, approximately 822 full-time employees. These structural characteristics shape how HTO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.35 indicates HTO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HTO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on HTO?
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 HTO snapshot
As of June 30, 2026, spot at $61.23, ATM IV 357.00%, IV rank 74.04%, expected move 102.35%. The iron condor on HTO 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 17-day expiry.
Why this iron condor structure on HTO specifically: HTO IV at 357.00% is rich versus its 1-year range, which favors premium-selling structures like a HTO iron condor, with a market-implied 1-standard-deviation move of approximately 102.35% (roughly $62.67 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HTO expiries trade a higher absolute premium for lower per-day decay. Position sizing on HTO should anchor to the underlying notional of $61.23 per share and to the trader's directional view on HTO stock.
HTO iron condor setup
The HTO 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 HTO near $61.23, the first option leg uses a $64.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HTO chain at a 17-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 HTO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $64.29 | N/A |
| Buy 1 | Call | $67.35 | N/A |
| Sell 1 | Put | $58.17 | N/A |
| Buy 1 | Put | $55.11 | N/A |
HTO 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.
HTO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HTO. 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 HTO
Iron condors on HTO are a delta-neutral premium-collection structure that profits if HTO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HTO thesis for this iron condor
The market-implied 1-standard-deviation range for HTO extends from approximately $-1.44 on the downside to $123.90 on the upside. A HTO iron condor is a delta-neutral premium-collection structure that pays off when HTO 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 HTO IV rank near 74.04% 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 HTO at 357.00%. As a Utilities name, HTO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HTO-specific events.
HTO 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. HTO positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HTO alongside the broader basket even when HTO-specific fundamentals are unchanged. Short-premium structures like a iron condor on HTO carry tail risk when realized volatility exceeds the implied move; review historical HTO earnings reactions and macro stress periods before sizing. Always rebuild the position from current HTO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HTO?
- A iron condor on HTO is the iron condor strategy applied to HTO (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 HTO stock trading near $61.23, the strikes shown on this page are snapped to the nearest listed HTO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HTO 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 HTO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 357.00%), 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 HTO iron condor?
- The breakeven for the HTO 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 HTO market-implied 1-standard-deviation expected move is approximately 102.35%; 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 HTO?
- Iron condors on HTO are a delta-neutral premium-collection structure that profits if HTO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HTO implied volatility affect this iron condor?
- HTO ATM IV is at 357.00% with IV rank near 74.04%, 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.