How are HUM 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 HUM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 46.03%), the computed maximum profit is $855.00 per contract and the computed maximum loss is -$645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HUM iron condor?

The breakeven for the HUM iron condor priced on this page is roughly $281.45 and $328.55 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 HUM market-implied 1-standard-deviation expected move is approximately 13.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HUM implied volatility affect this iron condor?

HUM ATM IV is at 46.03% with IV rank near 33.82%, 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.

HUM Iron Condor Strategy

HUM (Humana Inc.), in the Healthcare sector, (Medical - Healthcare Plans industry), listed on NYSE.

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through three segments: Retail, Group and Specialty, and Healthcare Services. The company offers medical and supplemental benefit plans to individuals. It also has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully insured medical and specialty health insurance benefits comprising dental, vision, and other supplemental health benefits; and administrative services only products to individuals and employer groups, as well as military services, such as TRICARE T2017 East Region contract. Further, it offers pharmacy solutions, provider services, and home solutions services, such as home health and other services to its health plan members, as well as to third parties.

HUM (Humana Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Plans, with a market capitalization of approximately $36.60B, a trailing P/E of 32.46, a beta of 0.68 versus the broader market, a 52-week range of 163.11-315.35, average daily share volume of 1.8M, a public-listing history dating back to 1981, approximately 66K full-time employees. These structural characteristics shape how HUM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.68 indicates HUM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HUM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on HUM?

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 HUM snapshot

As of May 15, 2026, spot at $304.60, ATM IV 46.03%, IV rank 33.82%, expected move 13.20%. The iron condor on HUM 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 28-day expiry.

Why this iron condor structure on HUM specifically: HUM IV at 46.03% is mid-range versus its 1-year history, so the credit collected on a HUM iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.20% (roughly $40.19 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUM expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUM should anchor to the underlying notional of $304.60 per share and to the trader's directional view on HUM stock.

HUM iron condor setup

The HUM 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 HUM near $304.60, the first option leg uses a $320.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUM chain at a 28-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 HUM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$320.00	$9.65
Buy 1	Call	$335.00	$6.15
Sell 1	Put	$290.00	$9.05
Buy 1	Put	$275.00	$4.00

HUM iron condor risk and reward

Net Premium / Debit: +$855.00
Max Profit (per contract): $855.00
Max Loss (per contract): -$645.00
Breakeven(s): $281.45, $328.55
Risk / Reward Ratio: 1.326

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.

HUM iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on HUM. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$645.00
$67.36	-77.9%	-$645.00
$134.71	-55.8%	-$645.00
$202.05	-33.7%	-$645.00
$269.40	-11.6%	-$645.00
$336.75	+10.6%	-$645.00
$404.10	+32.7%	-$645.00
$471.44	+54.8%	-$645.00
$538.79	+76.9%	-$645.00
$606.14	+99.0%	-$645.00

When traders use iron condor on HUM

Iron condors on HUM are a delta-neutral premium-collection structure that profits if HUM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

HUM thesis for this iron condor

The market-implied 1-standard-deviation range for HUM extends from approximately $264.41 on the downside to $344.79 on the upside. A HUM iron condor is a delta-neutral premium-collection structure that pays off when HUM 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 HUM IV rank near 33.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on HUM should anchor more to the directional view and the expected-move geometry. As a Healthcare name, HUM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUM-specific events.

HUM 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. HUM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUM alongside the broader basket even when HUM-specific fundamentals are unchanged. Short-premium structures like a iron condor on HUM carry tail risk when realized volatility exceeds the implied move; review historical HUM earnings reactions and macro stress periods before sizing. Always rebuild the position from current HUM chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on HUM?: A iron condor on HUM is the iron condor strategy applied to HUM (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 HUM stock trading near $304.60, the strikes shown on this page are snapped to the nearest listed HUM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HUM 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 HUM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 46.03%), the computed maximum profit is $855.00 per contract and the computed maximum loss is -$645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HUM iron condor?: The breakeven for the HUM iron condor priced on this page is roughly $281.45 and $328.55 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 HUM market-implied 1-standard-deviation expected move is approximately 13.20%; 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 HUM?: Iron condors on HUM are a delta-neutral premium-collection structure that profits if HUM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current HUM implied volatility affect this iron condor?: HUM ATM IV is at 46.03% with IV rank near 33.82%, 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.