THC Iron Condor Strategy
THC (Tenet Healthcare Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
Tenet Healthcare Corporation operates as a diversified healthcare services company. The company operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb-salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, and telemedicine access services. In addition, it operates ambulatory surgery and urgent care centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, patient communications and engagement support, and value-based care solutions to hospitals, health systems, physician practices, employers, and other customers. As of February 09, 2022, the company operated 60 hospitals; and approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers, and other care sites and clinics.
THC (Tenet Healthcare Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $16.87B, a trailing P/E of 9.98, a beta of 1.30 versus the broader market, a 52-week range of 146.6-247.21, average daily share volume of 1.2M, a public-listing history dating back to 1980, approximately 98K full-time employees. These structural characteristics shape how THC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places THC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.98 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 THC?
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 THC snapshot
As of May 15, 2026, spot at $195.20, ATM IV 41.60%, IV rank 30.46%, expected move 11.93%. The iron condor on THC 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 THC specifically: THC IV at 41.60% is mid-range versus its 1-year history, so the credit collected on a THC iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.93% (roughly $23.28 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 THC expiries trade a higher absolute premium for lower per-day decay. Position sizing on THC should anchor to the underlying notional of $195.20 per share and to the trader's directional view on THC stock.
THC iron condor setup
The THC 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 THC near $195.20, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THC 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 THC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $200.00 | $8.35 |
| Buy 1 | Call | $210.00 | $4.45 |
| Sell 1 | Put | $185.00 | $5.25 |
| Buy 1 | Put | $175.00 | $2.75 |
THC iron condor risk and reward
- Net Premium / Debit
- +$640.00
- Max Profit (per contract)
- $640.00
- Max Loss (per contract)
- -$360.00
- Breakeven(s)
- $178.60, $206.40
- Risk / Reward Ratio
- 1.778
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.
THC iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on THC. 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% | -$360.00 |
| $43.17 | -77.9% | -$360.00 |
| $86.33 | -55.8% | -$360.00 |
| $129.49 | -33.7% | -$360.00 |
| $172.64 | -11.6% | -$360.00 |
| $215.80 | +10.6% | -$360.00 |
| $258.96 | +32.7% | -$360.00 |
| $302.12 | +54.8% | -$360.00 |
| $345.28 | +76.9% | -$360.00 |
| $388.44 | +99.0% | -$360.00 |
When traders use iron condor on THC
Iron condors on THC are a delta-neutral premium-collection structure that profits if THC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
THC thesis for this iron condor
The market-implied 1-standard-deviation range for THC extends from approximately $171.92 on the downside to $218.48 on the upside. A THC iron condor is a delta-neutral premium-collection structure that pays off when THC 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 THC IV rank near 30.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on THC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, THC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THC-specific events.
THC 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. THC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move THC alongside the broader basket even when THC-specific fundamentals are unchanged. Short-premium structures like a iron condor on THC carry tail risk when realized volatility exceeds the implied move; review historical THC earnings reactions and macro stress periods before sizing. Always rebuild the position from current THC chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on THC?
- A iron condor on THC is the iron condor strategy applied to THC (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 THC stock trading near $195.20, the strikes shown on this page are snapped to the nearest listed THC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are THC 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 THC iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 41.60%), the computed maximum profit is $640.00 per contract and the computed maximum loss is -$360.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a THC iron condor?
- The breakeven for the THC iron condor priced on this page is roughly $178.60 and $206.40 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 THC market-implied 1-standard-deviation expected move is approximately 11.93%; 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 THC?
- Iron condors on THC are a delta-neutral premium-collection structure that profits if THC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current THC implied volatility affect this iron condor?
- THC ATM IV is at 41.60% with IV rank near 30.46%, 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.