How are HST butterfly max profit and max loss calculated?

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the HST butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is $42.03 per contract and the computed maximum loss is -$156.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HST butterfly?

The breakeven for the HST butterfly priced on this page is roughly $22.84 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 HST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HST implied volatility affect this butterfly?

HST ATM IV is at 27.10% with IV rank near 1.95%, 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.

HST Butterfly Strategy

HST (Host Hotels & Resorts, Inc.), in the Real Estate sector, (REIT - Hotel & Motel industry), listed on NASDAQ.

Host Hotels & Resorts, Inc., a distinguished member of the S&P 500 index, stands as the world's foremost lodging real estate investment trust (REIT) and a leading proprietor of luxury and upper-upscale hotel properties. The company boasts an extensive portfolio comprising roughly 46,100 rooms distributed among 74 locations across the United States and five international sites. Beyond these owned assets, it also holds non-controlling stakes in seven joint ventures—six domestically and one internationally. The firm's operational approach is characterized by a stringent capital allocation methodology and robust asset management tactics. It collaborates with a broad array of esteemed hospitality brands, including Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Swissôtel, ibis, and Novotel, in addition to various independent hotel labels.

HST (Host Hotels & Resorts, Inc.) trades in the Real Estate sector, specifically REIT - Hotel & Motel, with a market capitalization of approximately $15.62B, a trailing P/E of 15.37, a beta of 1.12 versus the broader market, a 52-week range of 15.61-25.71, average daily share volume of 9.2M, a public-listing history dating back to 1980, approximately 162 full-time employees. These structural characteristics shape how HST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.12 places HST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HST?

A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.

HST snapshot

As of August 14, 2026, spot at $22.91, ATM IV 27.10%, IV rank 1.95%, expected move 7.77%. The butterfly on HST 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 butterfly structure on HST specifically: HST IV at 27.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a HST butterfly, with a market-implied 1-standard-deviation move of approximately 7.77% (roughly $1.78 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 HST expiries trade a higher absolute premium for lower per-day decay. Position sizing on HST should anchor to the underlying notional of $22.91 per share and to the trader's directional view on HST stock.

HST butterfly setup

The HST butterfly 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 HST at $22.91 on that close, the first option leg uses a $21.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HST 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 HST shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$21.28	$1.85
Sell 2	Call	$23.28	$0.15
Buy 1	Call	$24.28	$0.01

HST butterfly risk and reward

Net Premium / Debit: -$156.00
Max Profit (per contract): $42.03
Max Loss (per contract): -$156.00
Breakeven(s): $22.84
Risk / Reward Ratio: 0.269

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.

HST butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HST. 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%	-$156.00
$5.07	-77.9%	-$156.00
$10.14	-55.7%	-$156.00
$15.20	-33.6%	-$156.00
$20.27	-11.5%	-$156.00
$25.33	+10.6%	-$56.00
$30.40	+32.7%	-$56.00
$35.46	+54.8%	-$56.00
$40.53	+76.9%	-$56.00
$45.59	+99.0%	-$56.00

When traders use butterfly on HST

Butterflies on HST are pinning bets - traders use them when they expect HST to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.

HST thesis for this butterfly

The market-implied 1-standard-deviation range for HST extends from approximately $21.13 on the downside to $24.69 on the upside. A HST long call butterfly is a pinning play: it pays maximum at the middle strike if HST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HST IV rank near 1.95% 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 HST at 27.10%. As a Real Estate name, HST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HST-specific events.

HST butterfly positions are structurally neutral / pin (limited-risk, limited-reward); 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. HST positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HST alongside the broader basket even when HST-specific fundamentals are unchanged. Always rebuild the position from current HST chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on HST?: A butterfly on HST is the butterfly strategy applied to HST (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With HST stock at $22.91 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HST chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HST butterfly max profit and max loss calculated?: Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the HST butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is $42.03 per contract and the computed maximum loss is -$156.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HST butterfly?: The breakeven for the HST butterfly priced on this page is roughly $22.84 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 HST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HST?: Butterflies on HST are pinning bets - traders use them when they expect HST to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
How does current HST implied volatility affect this butterfly?: HST ATM IV is at 27.10% with IV rank near 1.95%, 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.