How are HLT 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 HLT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.54%), the computed maximum profit is $1,827.00 per contract and the computed maximum loss is -$31,172.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HLT covered call?

The breakeven for the HLT covered call priced on this page is roughly $311.73 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 HLT market-implied 1-standard-deviation expected move is approximately 7.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HLT implied volatility affect this covered call?

HLT ATM IV is at 27.54% with IV rank near 50.42%, 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.

HLT Covered Call Strategy

HLT (Hilton Worldwide Holdings Inc.), in the Consumer Cyclical sector, (Travel Lodging industry), listed on NYSE.

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, and leasing hotels and resorts. It operates in two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brand names, trademarks, and service marks. It operates a brand portfolio of luxury, lifestyle, full service, focused service, all-suites hotel, and timeshare under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Signia by Hilton, NoMad, Canopy by Hilton, Graduate by Hilton, Tempo by Hilton, Motto by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Outset Collection by Hilton, Embassy Suites by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, LivSmart Studios by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Spark by Hilton, Hilton Grand Vacations, Small Luxury Hotels of the World, AutoCamp, and Hilton Honors brand names. The company has operations in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

HLT (Hilton Worldwide Holdings Inc.) trades in the Consumer Cyclical sector, specifically Travel Lodging, with a market capitalization of approximately $70.89B, a trailing P/E of 46.25, a beta of 1.07 versus the broader market, a 52-week range of 241.45-344.75, average daily share volume of 1.8M, a public-listing history dating back to 2013, approximately 182K full-time employees. These structural characteristics shape how HLT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.07 places HLT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 46.25 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. HLT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on HLT?

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 HLT snapshot

As of May 15, 2026, spot at $316.33, ATM IV 27.54%, IV rank 50.42%, expected move 7.89%. The covered call on HLT 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 28-day expiry.

Why this covered call structure on HLT specifically: HLT IV at 27.54% is mid-range versus its 1-year history, so the credit collected on a HLT covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.89% (roughly $24.97 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLT should anchor to the underlying notional of $316.33 per share and to the trader's directional view on HLT stock.

HLT covered call setup

The HLT 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 HLT near $316.33, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLT chain at a 28-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 HLT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$316.33	long
Sell 1	Call	$330.00	$4.60

HLT covered call risk and reward

Net Premium / Debit: -$31,173.00
Max Profit (per contract): $1,827.00
Max Loss (per contract): -$31,172.00
Breakeven(s): $311.73
Risk / Reward Ratio: 0.059

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.

HLT covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on HLT. 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%	-$31,172.00
$69.95	-77.9%	-$24,177.88
$139.89	-55.8%	-$17,183.76
$209.83	-33.7%	-$10,189.64
$279.77	-11.6%	-$3,195.52
$349.72	+10.6%	+$1,827.00
$419.66	+32.7%	+$1,827.00
$489.60	+54.8%	+$1,827.00
$559.54	+76.9%	+$1,827.00
$629.48	+99.0%	+$1,827.00

When traders use covered call on HLT

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

HLT thesis for this covered call

The market-implied 1-standard-deviation range for HLT extends from approximately $291.36 on the downside to $341.30 on the upside. A HLT covered call collects premium on an existing long HLT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether HLT will breach that level within the expiration window. Current HLT IV rank near 50.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on HLT should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, HLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLT-specific events.

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

Frequently asked questions

What is a covered call on HLT?: A covered call on HLT is the covered call strategy applied to HLT (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 HLT stock trading near $316.33, the strikes shown on this page are snapped to the nearest listed HLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HLT 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 HLT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.54%), the computed maximum profit is $1,827.00 per contract and the computed maximum loss is -$31,172.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HLT covered call?: The breakeven for the HLT covered call priced on this page is roughly $311.73 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 HLT market-implied 1-standard-deviation expected move is approximately 7.89%; 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 HLT?: Covered calls on HLT are an income strategy run on existing HLT 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 HLT implied volatility affect this covered call?: HLT ATM IV is at 27.54% with IV rank near 50.42%, 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.