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Hess Midstream (HESM) — wheel strategy suitability
Where HESM sits as an underlying for selling cash-secured puts and covered calls, and what its own price history says about the risk of being assigned into a falling stock. Snapshot of 3 October 2026.
Hess Midstream (HESM) scores 64 on the Wheel score, which puts it in the acceptable band — it passes the profitability and options filters but is not among the strongest candidates.
The score is carried by its quality (78/100) and held back by valuation (57/100). Growth is deliberately excluded from this score: fast growers tend to carry high implied volatility and gap risk, which is the opposite of what a wheel seller wants. It is not cheap, so assignment would leave you holding a fully priced stock.
It has monthly options only, which costs it a small liquidity haircut. Workable, but every roll commits you for a month.
Earnings are roughly 30 days out — fine for a short-dated contract that expires first, tight for a monthly.
Over the last 3.0 years it had 1 day with a fall of 10% or more (0.34 a year), a deepest drawdown of -25.8%, and a worst single session of -10.4%. That is better than the median screened name (0.67 gap-downs a year, -44.9% typical worst drawdown).
Realised volatility runs about 23% annualised. That is low: safer to own, but the premium will be thin.
Entry timing currently reads as a dip within an uptrend — historically the better half of the cycle to sell puts into.
Score breakdown
| Wheel score | 64 | 0–100 suitability for options selling |
|---|---|---|
| Quality | 78 | ROIC, margins, leverage, accruals |
| Valuation | 57 | cheaper on fwd P/E, EV/EBITDA, FCF yield |
| Margin stability | — | steadier earnings score higher |
| Options listed | Monthly | weekly avoids the liquidity haircut |
| Accounting flags | 0 | −8 points each |
Realised tail risk
Computed from our own daily price history, 2023-10-04 to 2026-10-01 (749 sessions). The Wheel score is built from fundamentals, so these price-derived numbers are an independent check on it, not a restatement of it.
| Days falling 10%+ in one session | 1 | 0.34 a year |
|---|---|---|
| Deepest drawdown | -25.8% | peak to trough |
| Worst single session | -10.4% | |
| Realised volatility | 23% | annualised |
Fundamentals
| Revenue (ttm) | 1,621M USD |
|---|---|
| Revenue CAGR (3y) | 8.3% |
| Net margin | 21.8% |
| Return on equity | — |
| Share price | $38.05 |
| Days to earnings | 30 |
| Sector / industry | Energy · Oil & Gas Midstream |
Open the HESM options chain on Yahoo Finance to check live strikes and premium — this page deliberately carries no quotes, because a quote baked into a static page is stale before you read it.
Run the numbers on HESM
Pre-filled with the snapshot price of $38.05 and 30-day realised volatility; add the strike and premium from the live option chain.