How to Earn Extra Income from Your Airbnb Stock (Without Selling It Yet)

The Big Idea in Simple Terms

Imagine you own a lemonade stand that’s doing really well. Someone offers to pay you $1,598 right now for the promise that you’ll sell them your stand for $170 per share (it’s worth $150 today) if it gets that valuable by June 2027. You keep the $1,598 no matter what happens. That’s basically what a "covered call" does for your Airbnb (ABNB) shares.

Why Airbnb Right Now?

Airbnb has been on a roll lately:

• 18% revenue growth in the last quarter
• Management raised their full-year forecast
• Stock is only 4% below its 52-week high
• New ventures (like hotels!) are growing more than double the main business speed

But here’s the question every investor faces: Have the best gains already happened, or is there more room to run?

The Covered Call Deal: Step by Step

Here’s exactly how this trade works with real numbers:

1. What You Need

• Own (or buy) 100 shares of ABNB at ~$149.92 each
• Total investment: ~$14,992

2. What You Do

• Sell 1 call option contract (each contract = 100 shares)
• Expiration: June 17, 2027 (~317 days from now)
• Strike price: $170 (that’s 13% above today’s price)

3. What You Get Instantly

• $1,598 in premium cash deposited to your account immediately
• This money is yours to keep forever — no strings attached

4. The Math That Matters

Two Ways This Plays Out

Scenario A: Stock Stays Below $170 (June 2027)

You keep the $1,598 premium
You keep all 100 shares
You can sell ANOTHER call and do it again
Result: ~11% return in ~10 months just for holding

Scenario B: Stock Goes Above $170 (June 2027)

You keep the $1,598 premium
Your shares sell automatically at $170
Total profit = $2,008 (stock gain) + $1,598 (premium) = $3,606
Result: ~24% return in ~10 months (~28% annualized)
Trade-off: You miss any gains above $170

[!IMPORTANT]
The Premium Is Yours No Matter What
Whether Airbnb soars to $200 or drops to $100, that $1,598 cash is deposited to your account immediately and never has to be returned. It’s not a loan. It’s not a "maybe." It’s yours.

The Real Question: How Much Upside Are You Willing to Cap?

The Bull Case (Why You Might NOT Want This Trade)

• New hotels business growing 2x faster than core business
• Management guiding for "low to mid-teens" revenue growth in 2026
• If this new engine takes off, stock could blow past $170 easily
• You’d have seller’s remorse watching shares you sold at $170 hit $200+

The Cautious Case (Why This Trade Makes Sense)

• Company admits Q2 growth will "decelerate slightly" from 9% to lower
• Entering fiercely competitive hotel market as the "new kid"
• Growth might be a grind, not a sprint
• 12.4% guaranteed income beats hoping for gains that might not come
• You’re essentially saying: "I’m happy with a 28% annualized profit if it hits $170"

What Should YOU Do?

Ask yourself these three questions:

1. Would I be happy selling my shares at $170? (That’s a 13% gain from here + the premium)
2. Do I think the new hotels venture will explode soon? Or will it take years?
3. Would I rather have $1,598 cash in hand today than an uncertain bigger gain later?

There’s no wrong answer — only the answer that matches your goals and risk tolerance.

Not Just for Airbnb: Turn ANY Stock Into Income

Don’t own ABNB? No problem. Almost any stock you own could be paying you this way.

Tools to Make It Easy

Pro Tip: Use covered calls on individual stocks for targeted income, but keep a diversified core portfolio (like the HQ Portfolio) for stability across market cycles.

Summary: The Bottom Line

• Airbnb is strong, but at 52-week highs, future gains are uncertain
• Covered call = get paid $1,598 now to agree to sell at $170 by June 2027
• You keep the $1,598 NO MATTER WHAT — stock up, down, or sideways
• Best case: 28% annualized return if called away
• Worst case: 12.4% annualized income while keeping shares to do it again
• Only cost: Capping gains above $170
• Decision comes down to: How much do you believe in the next growth chapter vs. how much you value guaranteed income today

FAQ: Your Questions Answered

What exactly is a "call option" in plain English?

Think of it like a rain check with a fee. You’re selling someone the right (but not the obligation) to buy your shares at a set price ($170) by a set date (June 2027). They pay you $1,598 for this right. If the stock never hits $170, they don’t use it — but you keep their $1,598.

Do I need 100 shares to do this?

Yes. One option contract = 100 shares. If you have 200 shares, you can sell 2 contracts and collect ~$3,196. If you have 50 shares, you can’t sell a standard contract (though some brokers offer "mini options" for 10 shares).

What if the stock crashes? Am I protected?

Partially. The $1,598 premium acts as a small cushion — your effective cost basis drops from $149.92 to ~$133.94 per share. But if ABNB drops to $100, you still lose ~$34/share on paper. The premium just softens the blow.

Can I get out of this trade early?

Yes! You can buy back the call option anytime before expiration. If the stock dropped, the option will be cheaper — you keep the difference as profit. If the stock surged, it’ll cost more to buy back (but your shares gained value too).

Is this risky?

Less risky than just owning the stock outright. You’re reducing your cost basis with guaranteed cash. The only "risk" is opportunity cost — missing gains above $170. You can’t lose the premium, and you can’t be forced to sell below $170.

Want to see what YOUR stocks could pay? Try the Covered Call Finder — type in a ticker, slide the strike, see the income instantly.