MMI Covered Call Strategy
MMI (Marcus & Millichap, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
Marcus & Millichap, Inc., an investment brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. The company offers commercial real estate investment sales, financing, research, and advisory services for multifamily, retail, office, industrial, single-tenant net lease, seniors housing, self-storage, hospitality, medical office, and manufactured housing. It also operates as a financial intermediary that provides commercial real estate capital markets solutions, including senior debt, mezzanine debt, joint venture, and preferred equity, as well as loan sales and consultative/due diligence services to commercial real estate owners, developers, investors, and capital providers. In addition, the company provides various ancillary services, including research, advisory, and consulting services to developers, lenders, owners, real estate investment trusts, high net worth individuals, pension fund advisors, and other institutions. Marcus & Millichap, Inc. was founded in 1971 and is headquartered in Calabasas, California.
MMI (Marcus & Millichap, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $1.11B, a beta of 1.26 versus the broader market, a 52-week range of 24.43-33.62, average daily share volume of 261K, a public-listing history dating back to 2013, approximately 897 full-time employees. These structural characteristics shape how MMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places MMI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on MMI?
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 MMI snapshot
As of May 15, 2026, spot at $28.27, ATM IV 78.00%, IV rank 24.68%, expected move 22.36%. The covered call on MMI 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 34-day expiry.
Why this covered call structure on MMI specifically: MMI IV at 78.00% is on the cheap side of its 1-year range, which means a premium-selling MMI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 22.36% (roughly $6.32 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MMI should anchor to the underlying notional of $28.27 per share and to the trader's directional view on MMI stock.
MMI covered call setup
The MMI 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 MMI near $28.27, the first option leg uses a $29.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MMI chain at a 34-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 MMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.27 | long |
| Sell 1 | Call | $29.68 | N/A |
MMI covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
MMI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on MMI. 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.
When traders use covered call on MMI
Covered calls on MMI are an income strategy run on existing MMI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
MMI thesis for this covered call
The market-implied 1-standard-deviation range for MMI extends from approximately $21.95 on the downside to $34.59 on the upside. A MMI covered call collects premium on an existing long MMI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MMI will breach that level within the expiration window. Current MMI IV rank near 24.68% 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 MMI at 78.00%. As a Real Estate name, MMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MMI-specific events.
MMI 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. MMI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MMI alongside the broader basket even when MMI-specific fundamentals are unchanged. Short-premium structures like a covered call on MMI carry tail risk when realized volatility exceeds the implied move; review historical MMI earnings reactions and macro stress periods before sizing. Always rebuild the position from current MMI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on MMI?
- A covered call on MMI is the covered call strategy applied to MMI (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 MMI stock trading near $28.27, the strikes shown on this page are snapped to the nearest listed MMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MMI 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 MMI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 78.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MMI covered call?
- The breakeven for the MMI covered call priced on this page is no defined breakeven on the modeled curve 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 MMI market-implied 1-standard-deviation expected move is approximately 22.36%; 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 MMI?
- Covered calls on MMI are an income strategy run on existing MMI 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 MMI implied volatility affect this covered call?
- MMI ATM IV is at 78.00% with IV rank near 24.68%, 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.