How are HST 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 HST covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $128.00 per contract and the computed maximum loss is -$2,056.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HST covered call?

The breakeven for the HST covered call priced on this page is roughly $20.57 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 HST market-implied 1-standard-deviation expected move is approximately 8.08%; 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 covered call?

HST ATM IV is at 28.20% with IV rank near 35.17%, 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.

HST Covered Call Strategy

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

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 74 properties in the United States and five properties internationally totaling approximately 46,100 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company's website at www.hosthotels.com.

HST (Host Hotels & Resorts, Inc.) trades in the Real Estate sector, specifically REIT - Hotel & Motel, with a market capitalization of approximately $14.77B, a trailing P/E of 14.77, a beta of 1.12 versus the broader market, a 52-week range of 14.46-22.39, average daily share volume of 9.0M, a public-listing history dating back to 1980, approximately 165 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 covered call on HST?

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 HST snapshot

As of May 15, 2026, spot at $21.27, ATM IV 28.20%, IV rank 35.17%, expected move 8.08%. The covered call on HST 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 HST specifically: HST IV at 28.20% is mid-range versus its 1-year history, so the credit collected on a HST covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.08% (roughly $1.72 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 HST expiries trade a higher absolute premium for lower per-day decay. Position sizing on HST should anchor to the underlying notional of $21.27 per share and to the trader's directional view on HST stock.

HST covered call setup

The HST 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 HST near $21.27, the first option leg uses a $21.85 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 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 HST shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$21.27	long
Sell 1	Call	$21.85	$0.70

HST covered call risk and reward

Net Premium / Debit: -$2,057.00
Max Profit (per contract): $128.00
Max Loss (per contract): -$2,056.00
Breakeven(s): $20.57
Risk / Reward Ratio: 0.062

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.

HST covered call payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$2,056.00
$4.71	-77.8%	-$1,585.82
$9.41	-55.7%	-$1,115.64
$14.12	-33.6%	-$645.46
$18.82	-11.5%	-$175.28
$23.52	+10.6%	+$128.00
$28.22	+32.7%	+$128.00
$32.92	+54.8%	+$128.00
$37.62	+76.9%	+$128.00
$42.33	+99.0%	+$128.00

When traders use covered call on HST

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

HST thesis for this covered call

The market-implied 1-standard-deviation range for HST extends from approximately $19.55 on the downside to $22.99 on the upside. A HST covered call collects premium on an existing long HST position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether HST will breach that level within the expiration window. Current HST IV rank near 35.17% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on HST should anchor more to the directional view and the expected-move geometry. 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 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. 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. Short-premium structures like a covered call on HST carry tail risk when realized volatility exceeds the implied move; review historical HST earnings reactions and macro stress periods before sizing. Always rebuild the position from current HST chain quotes before placing a trade.

Frequently asked questions

What is a covered call on HST?: A covered call on HST is the covered call strategy applied to HST (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 HST stock trading near $21.27, the strikes shown on this page are snapped to the nearest listed HST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HST 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 HST covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $128.00 per contract and the computed maximum loss is -$2,056.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HST covered call?: The breakeven for the HST covered call priced on this page is roughly $20.57 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 HST market-implied 1-standard-deviation expected move is approximately 8.08%; 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 HST?: Covered calls on HST are an income strategy run on existing HST 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 HST implied volatility affect this covered call?: HST ATM IV is at 28.20% with IV rank near 35.17%, 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.