How are BXP covered call max profit and max loss calculated?

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the BXP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.10%), the computed maximum profit is $534.50 per contract and the computed maximum loss is -$5,714.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BXP covered call?

The breakeven for the BXP covered call priced on this page is roughly $57.16 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 BXP market-implied 1-standard-deviation expected move is approximately 8.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BXP implied volatility affect this covered call?

BXP ATM IV is at 31.10% with IV rank near 35.63%, 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.

BXP Covered Call Strategy

BXP (BXP, Inc.), in the Real Estate sector, (REIT - Office industry), listed on NYSE.

Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment.

BXP (BXP, Inc.) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $9.31B, a trailing P/E of 29.21, a beta of 1.06 versus the broader market, a 52-week range of 49.72-79.33, average daily share volume of 2.5M, a public-listing history dating back to 1997, approximately 816 full-time employees. These structural characteristics shape how BXP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.06 places BXP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BXP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on BXP?

A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.

Current BXP snapshot

As of May 15, 2026, spot at $58.53, ATM IV 31.10%, IV rank 35.63%, expected move 8.92%. The covered call on BXP 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 63-day expiry.

Why this covered call structure on BXP specifically: BXP IV at 31.10% is mid-range versus its 1-year history, so the credit collected on a BXP covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.92% (roughly $5.22 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BXP expiries trade a higher absolute premium for lower per-day decay. Position sizing on BXP should anchor to the underlying notional of $58.53 per share and to the trader's directional view on BXP stock.

BXP covered call setup

The BXP covered call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BXP near $58.53, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BXP chain at a 63-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 BXP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$58.53	long
Sell 1	Call	$62.50	$1.38

BXP covered call risk and reward

Net Premium / Debit: -$5,715.50
Max Profit (per contract): $534.50
Max Loss (per contract): -$5,714.50
Breakeven(s): $57.16
Risk / Reward Ratio: 0.094

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.

BXP covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BXP. 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%	-$5,714.50
$12.95	-77.9%	-$4,420.48
$25.89	-55.8%	-$3,126.46
$38.83	-33.7%	-$1,832.44
$51.77	-11.5%	-$538.42
$64.71	+10.6%	+$534.50
$77.65	+32.7%	+$534.50
$90.59	+54.8%	+$534.50
$103.53	+76.9%	+$534.50
$116.47	+99.0%	+$534.50

When traders use covered call on BXP

Covered calls on BXP are an income strategy run on existing BXP stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

BXP thesis for this covered call

The market-implied 1-standard-deviation range for BXP extends from approximately $53.31 on the downside to $63.75 on the upside. A BXP covered call collects premium on an existing long BXP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BXP will breach that level within the expiration window. Current BXP IV rank near 35.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on BXP should anchor more to the directional view and the expected-move geometry. As a Real Estate name, BXP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BXP-specific events.

BXP covered call positions are structurally neutral to slightly bullish; 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. BXP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BXP alongside the broader basket even when BXP-specific fundamentals are unchanged. Short-premium structures like a covered call on BXP carry tail risk when realized volatility exceeds the implied move; review historical BXP earnings reactions and macro stress periods before sizing. Always rebuild the position from current BXP chain quotes before placing a trade.

Frequently asked questions

What is a covered call on BXP?: A covered call on BXP is the covered call strategy applied to BXP (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With BXP stock trading near $58.53, the strikes shown on this page are snapped to the nearest listed BXP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BXP covered call max profit and max loss calculated?: Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the BXP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.10%), the computed maximum profit is $534.50 per contract and the computed maximum loss is -$5,714.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BXP covered call?: The breakeven for the BXP covered call priced on this page is roughly $57.16 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 BXP market-implied 1-standard-deviation expected move is approximately 8.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a covered call on BXP?: Covered calls on BXP are an income strategy run on existing BXP stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
How does current BXP implied volatility affect this covered call?: BXP ATM IV is at 31.10% with IV rank near 35.63%, 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.