HUN Iron Condor Strategy
HUN (Huntsman Corporation), in the Basic Materials sector, (Chemicals industry), listed on NYSE.
Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide. The company operates through four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products. The Performance Products segment manufactures amines and maleic anhydrides, including ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. The Advanced Materials segment offers epoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents and toughening agents, and carbon nanotubes additives; and base liquid and solid resins. The Textile Effects segment provides textile chemicals and dyes.
HUN (Huntsman Corporation) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $2.52B, a beta of 0.64 versus the broader market, a 52-week range of 7.3-15.9, average daily share volume of 6.5M, a public-listing history dating back to 2005, approximately 6K full-time employees. These structural characteristics shape how HUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates HUN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HUN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on HUN?
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 HUN snapshot
As of May 15, 2026, spot at $13.79, ATM IV 59.40%, IV rank 23.56%, expected move 17.03%. The iron condor on HUN 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 98-day expiry.
Why this iron condor structure on HUN specifically: HUN IV at 59.40% is on the cheap side of its 1-year range, which means a premium-selling HUN iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.03% (roughly $2.35 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUN should anchor to the underlying notional of $13.79 per share and to the trader's directional view on HUN stock.
HUN iron condor setup
The HUN 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 HUN near $13.79, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUN chain at a 98-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 HUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $14.00 | $1.73 |
| Buy 1 | Call | $15.00 | $1.28 |
| Sell 1 | Put | $13.00 | $1.33 |
| Buy 1 | Put | $12.00 | $0.90 |
HUN iron condor risk and reward
- Net Premium / Debit
- +$87.50
- Max Profit (per contract)
- $87.50
- Max Loss (per contract)
- -$12.50
- Breakeven(s)
- $12.13, $14.88
- Risk / Reward Ratio
- 7.000
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.
HUN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HUN. 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 | -99.9% | -$12.50 |
| $3.06 | -77.8% | -$12.50 |
| $6.11 | -55.7% | -$12.50 |
| $9.15 | -33.6% | -$12.50 |
| $12.20 | -11.5% | +$7.68 |
| $15.25 | +10.6% | -$12.50 |
| $18.30 | +32.7% | -$12.50 |
| $21.35 | +54.8% | -$12.50 |
| $24.39 | +76.9% | -$12.50 |
| $27.44 | +99.0% | -$12.50 |
When traders use iron condor on HUN
Iron condors on HUN are a delta-neutral premium-collection structure that profits if HUN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HUN thesis for this iron condor
The market-implied 1-standard-deviation range for HUN extends from approximately $11.44 on the downside to $16.14 on the upside. A HUN iron condor is a delta-neutral premium-collection structure that pays off when HUN 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 HUN IV rank near 23.56% 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 HUN at 59.40%. As a Basic Materials name, HUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUN-specific events.
HUN 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. HUN positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUN alongside the broader basket even when HUN-specific fundamentals are unchanged. Short-premium structures like a iron condor on HUN carry tail risk when realized volatility exceeds the implied move; review historical HUN earnings reactions and macro stress periods before sizing. Always rebuild the position from current HUN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HUN?
- A iron condor on HUN is the iron condor strategy applied to HUN (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 HUN stock trading near $13.79, the strikes shown on this page are snapped to the nearest listed HUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HUN 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 HUN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is $87.50 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HUN iron condor?
- The breakeven for the HUN iron condor priced on this page is roughly $12.13 and $14.88 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 HUN market-implied 1-standard-deviation expected move is approximately 17.03%; 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 HUN?
- Iron condors on HUN are a delta-neutral premium-collection structure that profits if HUN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HUN implied volatility affect this iron condor?
- HUN ATM IV is at 59.40% with IV rank near 23.56%, 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.