NHI Iron Condor Strategy
NHI (National Health Investors, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.
NHI (National Health Investors, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $3.63B, a trailing P/E of 24.47, a beta of 0.58 versus the broader market, a 52-week range of 68.8-91.38, average daily share volume of 363K, a public-listing history dating back to 1991, approximately 30 full-time employees. These structural characteristics shape how NHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates NHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NHI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on NHI?
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 NHI snapshot
As of May 15, 2026, spot at $74.68, ATM IV 11.60%, IV rank 2.27%, expected move 3.33%. The iron condor on NHI 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 NHI specifically: NHI IV at 11.60% is on the cheap side of its 1-year range, which means a premium-selling NHI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 3.33% (roughly $2.48 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 NHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on NHI should anchor to the underlying notional of $74.68 per share and to the trader's directional view on NHI stock.
NHI iron condor setup
The NHI 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 NHI near $74.68, the first option leg uses a $78.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NHI 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 NHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $78.41 | N/A |
| Buy 1 | Call | $82.15 | N/A |
| Sell 1 | Put | $70.95 | N/A |
| Buy 1 | Put | $67.21 | N/A |
NHI 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.
NHI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NHI. 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 NHI
Iron condors on NHI are a delta-neutral premium-collection structure that profits if NHI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NHI thesis for this iron condor
The market-implied 1-standard-deviation range for NHI extends from approximately $72.20 on the downside to $77.16 on the upside. A NHI iron condor is a delta-neutral premium-collection structure that pays off when NHI 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 NHI IV rank near 2.27% 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 NHI at 11.60%. As a Real Estate name, NHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NHI-specific events.
NHI 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. NHI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NHI alongside the broader basket even when NHI-specific fundamentals are unchanged. Short-premium structures like a iron condor on NHI carry tail risk when realized volatility exceeds the implied move; review historical NHI earnings reactions and macro stress periods before sizing. Always rebuild the position from current NHI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NHI?
- A iron condor on NHI is the iron condor strategy applied to NHI (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 NHI stock trading near $74.68, the strikes shown on this page are snapped to the nearest listed NHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NHI 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 NHI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 11.60%), 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 NHI iron condor?
- The breakeven for the NHI 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 NHI market-implied 1-standard-deviation expected move is approximately 3.33%; 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 NHI?
- Iron condors on NHI are a delta-neutral premium-collection structure that profits if NHI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NHI implied volatility affect this iron condor?
- NHI ATM IV is at 11.60% with IV rank near 2.27%, 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.