RHP Covered Call Strategy
RHP (Ryman Hospitality Properties, Inc.), in the Real Estate sector, (REIT - Hotel & Motel industry), listed on NYSE.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and country music entertainment experiences. The Company's core holdings* include a network of five of the top 10 largest non-gaming convention center hotels in the United States based on total indoor meeting space. These convention center resorts operate under the Gaylord Hotels brand and are managed by Marriott International. The Company also owns two adjacent ancillary hotels and a small number of attractions managed by Marriott International for a combined total of 10,110 rooms and more than 2.7 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. The Company's Entertainment segment includes a growing collection of iconic and emerging country music brands, including the Grand Ole Opry; Ryman Auditorium, WSM 650 AM; Ole Red and Circle, a country lifestyle media network the Company owns in a joint-venture with Gray Television. The Company operates its Entertainment segment as part of a taxable REIT subsidiary. * The Company is the sole owner of Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; and Gaylord National Resort & Convention Center.
RHP (Ryman Hospitality Properties, Inc.) trades in the Real Estate sector, specifically REIT - Hotel & Motel, with a market capitalization of approximately $6.75B, a trailing P/E of 26.33, a beta of 1.22 versus the broader market, a 52-week range of 83.82-112.5, average daily share volume of 556K, a public-listing history dating back to 1991, approximately 1K full-time employees. These structural characteristics shape how RHP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places RHP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RHP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on RHP?
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 RHP snapshot
As of May 15, 2026, spot at $104.12, ATM IV 28.50%, IV rank 3.19%, expected move 8.17%. The covered call on RHP 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 RHP specifically: RHP IV at 28.50% is on the cheap side of its 1-year range, which means a premium-selling RHP covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.17% (roughly $8.51 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 RHP expiries trade a higher absolute premium for lower per-day decay. Position sizing on RHP should anchor to the underlying notional of $104.12 per share and to the trader's directional view on RHP stock.
RHP covered call setup
The RHP 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 RHP near $104.12, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RHP 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 RHP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $104.12 | long |
| Sell 1 | Call | $110.00 | $2.55 |
RHP covered call risk and reward
- Net Premium / Debit
- -$10,157.00
- Max Profit (per contract)
- $843.00
- Max Loss (per contract)
- -$10,156.00
- Breakeven(s)
- $101.57
- Risk / Reward Ratio
- 0.083
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.
RHP covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on RHP. 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% | -$10,156.00 |
| $23.03 | -77.9% | -$7,853.96 |
| $46.05 | -55.8% | -$5,551.92 |
| $69.07 | -33.7% | -$3,249.88 |
| $92.09 | -11.6% | -$947.84 |
| $115.11 | +10.6% | +$843.00 |
| $138.13 | +32.7% | +$843.00 |
| $161.15 | +54.8% | +$843.00 |
| $184.17 | +76.9% | +$843.00 |
| $207.19 | +99.0% | +$843.00 |
When traders use covered call on RHP
Covered calls on RHP are an income strategy run on existing RHP stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
RHP thesis for this covered call
The market-implied 1-standard-deviation range for RHP extends from approximately $95.61 on the downside to $112.63 on the upside. A RHP covered call collects premium on an existing long RHP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RHP will breach that level within the expiration window. Current RHP IV rank near 3.19% 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 RHP at 28.50%. As a Real Estate name, RHP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RHP-specific events.
RHP 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. RHP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RHP alongside the broader basket even when RHP-specific fundamentals are unchanged. Short-premium structures like a covered call on RHP carry tail risk when realized volatility exceeds the implied move; review historical RHP earnings reactions and macro stress periods before sizing. Always rebuild the position from current RHP chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on RHP?
- A covered call on RHP is the covered call strategy applied to RHP (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 RHP stock trading near $104.12, the strikes shown on this page are snapped to the nearest listed RHP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RHP 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 RHP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), the computed maximum profit is $843.00 per contract and the computed maximum loss is -$10,156.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RHP covered call?
- The breakeven for the RHP covered call priced on this page is roughly $101.57 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 RHP market-implied 1-standard-deviation expected move is approximately 8.17%; 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 RHP?
- Covered calls on RHP are an income strategy run on existing RHP 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 RHP implied volatility affect this covered call?
- RHP ATM IV is at 28.50% with IV rank near 3.19%, 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.