How are MAR 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 MAR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), the computed maximum profit is $2,242.00 per contract and the computed maximum loss is -$34,757.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAR covered call?

The breakeven for the MAR covered call priced on this page is roughly $347.58 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 MAR market-implied 1-standard-deviation expected move is approximately 8.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAR implied volatility affect this covered call?

MAR ATM IV is at 29.20% with IV rank near 49.37%, 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.

MAR Covered Call Strategy

MAR (Marriott International, Inc.), in the Consumer Cyclical sector, (Travel Lodging industry), listed on NASDAQ.

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through U.S. and Canada, and International segments. It operates its properties under the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of February 15, 2022, it operated approximately 7,989 properties under 30 hotel brands in 139 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.

MAR (Marriott International, Inc.) trades in the Consumer Cyclical sector, specifically Travel Lodging, with a market capitalization of approximately $92.34B, a trailing P/E of 36.39, a beta of 1.11 versus the broader market, a 52-week range of 253.56-380, average daily share volume of 1.5M, a public-listing history dating back to 1998, approximately 418K full-time employees. These structural characteristics shape how MAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places MAR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.39 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. MAR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on MAR?

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 MAR snapshot

As of May 15, 2026, spot at $352.18, ATM IV 29.20%, IV rank 49.37%, expected move 8.37%. The covered call on MAR 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 MAR specifically: MAR IV at 29.20% is mid-range versus its 1-year history, so the credit collected on a MAR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.37% (roughly $29.48 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 MAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAR should anchor to the underlying notional of $352.18 per share and to the trader's directional view on MAR stock.

MAR covered call setup

The MAR 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 MAR near $352.18, the first option leg uses a $370.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAR 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 MAR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$352.18	long
Sell 1	Call	$370.00	$4.60

MAR covered call risk and reward

Net Premium / Debit: -$34,758.00
Max Profit (per contract): $2,242.00
Max Loss (per contract): -$34,757.00
Breakeven(s): $347.58
Risk / Reward Ratio: 0.065

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.

MAR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on MAR. 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%	-$34,757.00
$77.88	-77.9%	-$26,970.22
$155.75	-55.8%	-$19,183.43
$233.61	-33.7%	-$11,396.65
$311.48	-11.6%	-$3,609.86
$389.35	+10.6%	+$2,242.00
$467.22	+32.7%	+$2,242.00
$545.08	+54.8%	+$2,242.00
$622.95	+76.9%	+$2,242.00
$700.82	+99.0%	+$2,242.00

When traders use covered call on MAR

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

MAR thesis for this covered call

The market-implied 1-standard-deviation range for MAR extends from approximately $322.70 on the downside to $381.66 on the upside. A MAR covered call collects premium on an existing long MAR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MAR will breach that level within the expiration window. Current MAR IV rank near 49.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on MAR should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAR-specific events.

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

Frequently asked questions

What is a covered call on MAR?: A covered call on MAR is the covered call strategy applied to MAR (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 MAR stock trading near $352.18, the strikes shown on this page are snapped to the nearest listed MAR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAR 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 MAR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), the computed maximum profit is $2,242.00 per contract and the computed maximum loss is -$34,757.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAR covered call?: The breakeven for the MAR covered call priced on this page is roughly $347.58 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 MAR market-implied 1-standard-deviation expected move is approximately 8.37%; 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 MAR?: Covered calls on MAR are an income strategy run on existing MAR 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 MAR implied volatility affect this covered call?: MAR ATM IV is at 29.20% with IV rank near 49.37%, 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.