PRA Iron Condor Strategy
PRA (ProAssurance Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Lloyd's Syndicate segments. It offers professional liability insurance for healthcare providers and institutions, and attorneys; liability insurance for medical technology and life sciences risks; and workers' compensation insurance, such as guaranteed cost policies, policyholder dividend policies, retrospectively rated policies, and deductible policies, as well as alternative market solutions that include program design, fronting, claims administration, risk management, SPC rental, asset management, and SPC management services for individual companies, agencies, groups, and associations. The company also participates in Lloyd's of London Syndicate 1729, which underwrites property and casualty insurance, and reinsurance. It markets its products through independent agencies and brokers, as well as an internal sales force. The company was founded in 1976 and is headquartered in Birmingham, Alabama.
PRA (ProAssurance Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $1.27B, a trailing P/E of 19.43, a beta of 0.05 versus the broader market, a 52-week range of 22.72-24.85, average daily share volume of 797K, a public-listing history dating back to 1991, approximately 1K full-time employees. These structural characteristics shape how PRA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.05 indicates PRA 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 PRA?
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 PRA snapshot
As of May 14, 2026, spot at $24.61, ATM IV 46.30%, IV rank 37.30%, expected move 13.27%. The iron condor on PRA 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 35-day expiry.
Why this iron condor structure on PRA specifically: PRA IV at 46.30% is mid-range versus its 1-year history, so the credit collected on a PRA iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $3.27 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRA should anchor to the underlying notional of $24.61 per share and to the trader's directional view on PRA stock.
PRA iron condor setup
The PRA 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 PRA near $24.61, the first option leg uses a $25.84 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRA chain at a 35-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 PRA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $25.84 | N/A |
| Buy 1 | Call | $27.07 | N/A |
| Sell 1 | Put | $23.38 | N/A |
| Buy 1 | Put | $22.15 | N/A |
PRA 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.
PRA iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PRA. 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 PRA
Iron condors on PRA are a delta-neutral premium-collection structure that profits if PRA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PRA thesis for this iron condor
The market-implied 1-standard-deviation range for PRA extends from approximately $21.34 on the downside to $27.88 on the upside. A PRA iron condor is a delta-neutral premium-collection structure that pays off when PRA 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 PRA IV rank near 37.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on PRA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRA-specific events.
PRA 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. PRA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRA alongside the broader basket even when PRA-specific fundamentals are unchanged. Short-premium structures like a iron condor on PRA carry tail risk when realized volatility exceeds the implied move; review historical PRA earnings reactions and macro stress periods before sizing. Always rebuild the position from current PRA chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PRA?
- A iron condor on PRA is the iron condor strategy applied to PRA (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 PRA stock trading near $24.61, the strikes shown on this page are snapped to the nearest listed PRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRA 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 PRA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), 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 PRA iron condor?
- The breakeven for the PRA 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 PRA market-implied 1-standard-deviation expected move is approximately 13.27%; 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 PRA?
- Iron condors on PRA are a delta-neutral premium-collection structure that profits if PRA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PRA implied volatility affect this iron condor?
- PRA ATM IV is at 46.30% with IV rank near 37.30%, 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.