This UNH Iron Condor Aims for 40% ROI in 12 Days
Outlook is neutral, with stock confined to a channel of ±4%
Strategy has +40% ROI potential and 9% overvalued
| Expiration | 10-Jan-25 |
| Buy | 465 Put |
| Sell | 485 Put |
| Sell | 525 Call |
| Buy | 545 Call |
| Credit: | $5.72 |
Option Profit Calculator for UNH Iron Condor at 10-Jan-25 Expiration
If UNH stock price at expiration is between $485.00 and $525.00, this spread has a 40% upside potential
As you can see in the chart above, the optimal outcome is for UNH stock price to close between $485.00 and $525.00 at the January 10, 2025 expiration. Within that price range, all of the options will expire worthless, and you'd keep the original $5.72 credit you received at the time of the trade.
The maximum gain will be realized if the stock price is between $485.00 and $525.00. The maximum gain is $5.72
The maximum loss would occur if the stock price at expiration is below $465.00 or above $545.00. The maximum loss is $14.28
UNH Spread Current Market Price vs. Historical Average
UNH Iron Condor is trading at a 9% premium to historical average.
Using historical data to measure how a similar spread in UNH was priced in the market, the 4-year average value was 5.25, with a high mark of 9.39 and a low of 2.72.
Currently, this iron condor is bid at 5.72 and offered at 7.55. The midpoint of the spread is 6.63.
If we use 5.25 as our historical fair value benchmark, the current market bid price is at a 9% premium, while the current market midpoint represents a 26% premium.
| Current Price | Historical Values of Similar Iron Condors | ||||
| Bid | Ask | Midpoint | Average | High | Low |
| 5.72 | 7.55 | 6.63 | 5.25 | 9.39 | 2.72 |
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