PACS Iron Condor Strategy
PACS (PACS Group, Inc.), in the Financial Services sector, (Financial - Conglomerates industry), listed on NYSE.
PACS Group, Inc. is a holding company, which engages in the provision of post-acute healthcare facilities, professionals, and ancillary services. It provides senior care, assisted living, and independent living options in some of the communities. The company was founded by Jason Murray and Mark Hancock in 2013 and is headquartered in Farmington, UT.
PACS (PACS Group, Inc.) trades in the Financial Services sector, specifically Financial - Conglomerates, with a market capitalization of approximately $6.54B, a trailing P/E of 26.61, a beta of -0.03 versus the broader market, a 52-week range of 7.5-43.08, average daily share volume of 890K, a public-listing history dating back to 2024, approximately 32K full-time employees. These structural characteristics shape how PACS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.03 indicates PACS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a iron condor on PACS?
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 PACS snapshot
As of May 15, 2026, spot at $37.88, ATM IV 59.40%, IV rank 2.58%, expected move 17.03%. The iron condor on PACS 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 PACS specifically: PACS IV at 59.40% is on the cheap side of its 1-year range, which means a premium-selling PACS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.03% (roughly $6.45 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 PACS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PACS should anchor to the underlying notional of $37.88 per share and to the trader's directional view on PACS stock.
PACS iron condor setup
The PACS 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 PACS near $37.88, the first option leg uses a $39.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PACS 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 PACS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $39.77 | N/A |
| Buy 1 | Call | $41.67 | N/A |
| Sell 1 | Put | $35.99 | N/A |
| Buy 1 | Put | $34.09 | N/A |
PACS 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.
PACS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PACS. 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 PACS
Iron condors on PACS are a delta-neutral premium-collection structure that profits if PACS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PACS thesis for this iron condor
The market-implied 1-standard-deviation range for PACS extends from approximately $31.43 on the downside to $44.33 on the upside. A PACS iron condor is a delta-neutral premium-collection structure that pays off when PACS 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 PACS IV rank near 2.58% 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 PACS at 59.40%. As a Financial Services name, PACS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PACS-specific events.
PACS 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. PACS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PACS alongside the broader basket even when PACS-specific fundamentals are unchanged. Short-premium structures like a iron condor on PACS carry tail risk when realized volatility exceeds the implied move; review historical PACS earnings reactions and macro stress periods before sizing. Always rebuild the position from current PACS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PACS?
- A iron condor on PACS is the iron condor strategy applied to PACS (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 PACS stock trading near $37.88, the strikes shown on this page are snapped to the nearest listed PACS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PACS 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 PACS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 59.40%), 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 PACS iron condor?
- The breakeven for the PACS 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 PACS 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 PACS?
- Iron condors on PACS are a delta-neutral premium-collection structure that profits if PACS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PACS implied volatility affect this iron condor?
- PACS ATM IV is at 59.40% with IV rank near 2.58%, 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.