MHO Iron Condor Strategy
MHO (M/I Homes, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.
M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, and luxury buyers under the M/I Homes brand name. The company also purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. In addition, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. The company was formerly known as M/I Schottenstein Homes, Inc. and changed its name to M/I Homes, Inc. in January 2004.
MHO (M/I Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $3.27B, a trailing P/E of 9.19, a beta of 1.65 versus the broader market, a 52-week range of 103.52-158.92, average daily share volume of 244K, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how MHO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.65 indicates MHO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.19 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 iron condor on MHO?
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 MHO snapshot
As of May 15, 2026, spot at $121.52, ATM IV 40.20%, IV rank 36.28%, expected move 11.53%. The iron condor on MHO 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 MHO specifically: MHO IV at 40.20% is mid-range versus its 1-year history, so the credit collected on a MHO iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.53% (roughly $14.01 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 MHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHO should anchor to the underlying notional of $121.52 per share and to the trader's directional view on MHO stock.
MHO iron condor setup
The MHO 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 MHO near $121.52, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHO 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 MHO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $130.00 | $3.50 |
| Buy 1 | Call | $135.00 | $1.90 |
| Sell 1 | Put | $115.00 | $3.05 |
| Buy 1 | Put | $110.00 | $2.00 |
MHO iron condor risk and reward
- Net Premium / Debit
- +$265.00
- Max Profit (per contract)
- $265.00
- Max Loss (per contract)
- -$235.00
- Breakeven(s)
- $112.35, $132.65
- Risk / Reward Ratio
- 1.128
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.
MHO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MHO. 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% | -$235.00 |
| $26.88 | -77.9% | -$235.00 |
| $53.75 | -55.8% | -$235.00 |
| $80.61 | -33.7% | -$235.00 |
| $107.48 | -11.6% | -$235.00 |
| $134.35 | +10.6% | -$169.82 |
| $161.22 | +32.7% | -$235.00 |
| $188.08 | +54.8% | -$235.00 |
| $214.95 | +76.9% | -$235.00 |
| $241.82 | +99.0% | -$235.00 |
When traders use iron condor on MHO
Iron condors on MHO are a delta-neutral premium-collection structure that profits if MHO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MHO thesis for this iron condor
The market-implied 1-standard-deviation range for MHO extends from approximately $107.51 on the downside to $135.53 on the upside. A MHO iron condor is a delta-neutral premium-collection structure that pays off when MHO 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 MHO IV rank near 36.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on MHO should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MHO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHO-specific events.
MHO 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. MHO positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MHO alongside the broader basket even when MHO-specific fundamentals are unchanged. Short-premium structures like a iron condor on MHO carry tail risk when realized volatility exceeds the implied move; review historical MHO earnings reactions and macro stress periods before sizing. Always rebuild the position from current MHO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MHO?
- A iron condor on MHO is the iron condor strategy applied to MHO (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 MHO stock trading near $121.52, the strikes shown on this page are snapped to the nearest listed MHO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MHO 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 MHO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $265.00 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MHO iron condor?
- The breakeven for the MHO iron condor priced on this page is roughly $112.35 and $132.65 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 MHO market-implied 1-standard-deviation expected move is approximately 11.53%; 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 MHO?
- Iron condors on MHO are a delta-neutral premium-collection structure that profits if MHO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MHO implied volatility affect this iron condor?
- MHO ATM IV is at 40.20% with IV rank near 36.28%, 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.