MHO Iron Condor Strategy
MHO (M/I Homes, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.
M/I Homes, Inc. (MHO), along with its affiliated companies, constructs single-family residences across a broad geographical area, including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. Its operations are divided into three primary segments: Northern Homebuilding, Southern Homebuilding, and Financial Services. Under the M/I Homes brand, the company engages in the entire process of home development, from conceptual design and construction to marketing and sales. It caters to a diverse clientele, encompassing first-time purchasers, millennials, those upgrading their homes, empty-nesters, and luxury market consumers, offering both detached single-family houses and attached townhouses. Beyond building, M/I Homes acquires raw land, transforming it into ready-to-build lots. These developed parcels are then utilized for its own single-family home construction projects or sold to external parties.
MHO (M/I Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $4.20B, a trailing P/E of 11.79, a beta of 1.64 versus the broader market, a 52-week range of 110.95-163.66, average daily share volume of 248K, 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 1.64 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 11.79 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 June 30, 2026, spot at $160.33, ATM IV 33.80%, IV rank 16.37%, expected move 9.69%. 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 17-day expiry.
Why this iron condor structure on MHO specifically: MHO IV at 33.80% is on the cheap side of its 1-year range, which means a premium-selling MHO iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.69% (roughly $15.54 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 MHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHO should anchor to the underlying notional of $160.33 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 $160.33, the first option leg uses a $170.00 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 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 MHO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $170.00 | $1.35 |
| Buy 1 | Call | $175.00 | $0.68 |
| Sell 1 | Put | $150.00 | $1.11 |
| Buy 1 | Put | $145.00 | $0.46 |
MHO iron condor risk and reward
- Net Premium / Debit
- +$132.00
- Max Profit (per contract)
- $132.00
- Max Loss (per contract)
- -$368.00
- Breakeven(s)
- $148.68, $171.32
- Risk / Reward Ratio
- 0.359
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% | -$368.00 |
| $35.46 | -77.9% | -$368.00 |
| $70.91 | -55.8% | -$368.00 |
| $106.36 | -33.7% | -$368.00 |
| $141.80 | -11.6% | -$368.00 |
| $177.25 | +10.6% | -$368.00 |
| $212.70 | +32.7% | -$368.00 |
| $248.15 | +54.8% | -$368.00 |
| $283.60 | +76.9% | -$368.00 |
| $319.05 | +99.0% | -$368.00 |
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 $144.79 on the downside to $175.87 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 16.37% 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 MHO at 33.80%. 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 $160.33, 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 33.80%), the computed maximum profit is $132.00 per contract and the computed maximum loss is -$368.00 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 $148.68 and $171.32 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 9.69%; 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 33.80% with IV rank near 16.37%, 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.