MASI Iron Condor Strategy
MASI (Masimo Corporation), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
Masimo Corporation develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. It offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, handheld capnograph and capnometer devices, and capnography sampling lines; O3 regional oximetry for tissue oxygen saturation measurement; and hemodynamic monitoring solutions. Its Masimo Hospital Automation platform includes Patient SafetyNet, Patient SafetyNet surveillance, Kite, UniView, Replica, UniView : 60, and MyView. It offers connectivity devices; and nasal high flow ventilation and neuromodulation solutions.
MASI (Masimo Corporation) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $9.34B, a trailing P/E of 122.06, a beta of 1.13 versus the broader market, a 52-week range of 125.94-179, average daily share volume of 1.7M, a public-listing history dating back to 2007, approximately 4K full-time employees. These structural characteristics shape how MASI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places MASI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 122.06 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a iron condor on MASI?
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 MASI snapshot
As of May 15, 2026, spot at $178.50, ATM IV 156.40%, IV rank 37.21%, expected move 0.21%. The iron condor on MASI 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 iron condor structure on MASI specifically: MASI IV at 156.40% is mid-range versus its 1-year history, so the credit collected on a MASI iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 0.21% (roughly $0.37 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 MASI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MASI should anchor to the underlying notional of $178.50 per share and to the trader's directional view on MASI stock.
MASI iron condor setup
The MASI 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 MASI near $178.50, the first option leg uses a $187.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MASI 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 MASI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $187.43 | N/A |
| Buy 1 | Call | $196.35 | N/A |
| Sell 1 | Put | $169.58 | N/A |
| Buy 1 | Put | $160.65 | N/A |
MASI 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.
MASI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MASI. 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 MASI
Iron condors on MASI are a delta-neutral premium-collection structure that profits if MASI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MASI thesis for this iron condor
The market-implied 1-standard-deviation range for MASI extends from approximately $178.13 on the downside to $178.87 on the upside. A MASI iron condor is a delta-neutral premium-collection structure that pays off when MASI 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 MASI IV rank near 37.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on MASI should anchor more to the directional view and the expected-move geometry. As a Healthcare name, MASI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MASI-specific events.
MASI 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. MASI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MASI alongside the broader basket even when MASI-specific fundamentals are unchanged. Short-premium structures like a iron condor on MASI carry tail risk when realized volatility exceeds the implied move; review historical MASI earnings reactions and macro stress periods before sizing. Always rebuild the position from current MASI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MASI?
- A iron condor on MASI is the iron condor strategy applied to MASI (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 MASI stock trading near $178.50, the strikes shown on this page are snapped to the nearest listed MASI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MASI 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 MASI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 156.40%), 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 MASI iron condor?
- The breakeven for the MASI 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 MASI market-implied 1-standard-deviation expected move is approximately 0.21%; 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 MASI?
- Iron condors on MASI are a delta-neutral premium-collection structure that profits if MASI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MASI implied volatility affect this iron condor?
- MASI ATM IV is at 156.40% with IV rank near 37.21%, 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.