How are BZH 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 BZH covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $187.00 per contract and the computed maximum loss is -$3,312.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BZH covered call?

The breakeven for the BZH covered call priced on this page is roughly $33.13 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BZH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BZH implied volatility affect this covered call?

BZH ATM IV is at 37.90% with IV rank near 7.45%, 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.

BZH Covered Call Strategy

BZH (Beazer Homes USA, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

Beazer Homes USA, Inc. operates as a residential property developer and builder across the United States. The company is responsible for the planning, construction, and marketing of both detached and attached dwellings, which are sold under its distinct brands: Beazer Homes, Gatherings, and Choice Plans. Its properties are marketed through commissioned in-house sales consultants and external real estate agents. Beazer Homes' operational footprint covers a wide geographical area, including Arizona, California, Nevada, Texas, Delaware, Maryland, Indiana, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Founded in 1985, the company maintains its corporate headquarters in Atlanta, Georgia.

BZH (Beazer Homes USA, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $906.9M, a beta of 2.18 versus the broader market, a 52-week range of 17.83-34.54, average daily share volume of 608K, a public-listing history dating back to 1994, approximately 1K full-time employees. These structural characteristics shape how BZH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.18 indicates BZH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BZH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on BZH?

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.

BZH snapshot

As of August 14, 2026, spot at $33.14, ATM IV 37.90%, IV rank 7.45%, expected move 10.87%. The covered call on BZH below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this covered call structure on BZH specifically: BZH IV at 37.90% is on the cheap side of its 1-year range, which means a premium-selling BZH covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $3.60 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BZH expiries trade a higher absolute premium for lower per-day decay. Position sizing on BZH should anchor to the underlying notional of $33.14 per share and to the trader's directional view on BZH stock.

BZH covered call setup

The BZH covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BZH at $33.14 on that close, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BZH chain at a 7-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 BZH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$33.14	long
Sell 1	Call	$35.00	$0.01

BZH covered call risk and reward

Net Premium / Debit: -$3,313.00
Max Profit (per contract): $187.00
Max Loss (per contract): -$3,312.00
Breakeven(s): $33.13
Risk / Reward Ratio: 0.056

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.

BZH covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BZH. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$3,312.00
$7.34	-77.9%	-$2,579.37
$14.66	-55.8%	-$1,846.73
$21.99	-33.6%	-$1,114.10
$29.32	-11.5%	-$381.47
$36.64	+10.6%	+$187.00
$43.97	+32.7%	+$187.00
$51.29	+54.8%	+$187.00
$58.62	+76.9%	+$187.00
$65.95	+99.0%	+$187.00

When traders use covered call on BZH

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

BZH thesis for this covered call

The market-implied 1-standard-deviation range for BZH extends from approximately $29.54 on the downside to $36.74 on the upside. A BZH covered call collects premium on an existing long BZH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BZH will breach that level within the expiration window. Current BZH IV rank near 7.45% 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 BZH at 37.90%. As a Consumer Cyclical name, BZH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BZH-specific events.

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

Frequently asked questions

What is a covered call on BZH?: A covered call on BZH is the covered call strategy applied to BZH (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 BZH stock at $33.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BZH chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BZH 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 BZH covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $187.00 per contract and the computed maximum loss is -$3,312.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BZH covered call?: The breakeven for the BZH covered call priced on this page is roughly $33.13 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BZH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; 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 BZH?: Covered calls on BZH are an income strategy run on existing BZH 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 BZH implied volatility affect this covered call?: BZH ATM IV is at 37.90% with IV rank near 7.45%, 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.