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Why AMZN Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Amazon.com Inc (Consumer Cyclical) · $238.38 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
AMZN is trading at $238.38 with RSI at 67 (neutral territory). Options IV is at 36% — 30% below its 30-day average of 52%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
67
IV Today
36.3%
IV vs 30d Avg
-30%
MACD
bullish
ADX
15
MFI
53
The Setup
AMZN Covered Call
LONG STOCK
100 shares @ $238.38
SHORT CALL
$255 Jun '26 · $8.35/sh
Net Cost
$23,003
Max Profit
+$2,497
Break-even
$230.03
Projected P&L at Target
+$2,497
(10.9%)
P&L at Expiry
P&L Scenarios
What happens at different AMZN prices by expiry:
| AMZN Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $191 (-20%) | -$3,989 | -$3,948 | -$3,934 | -$3,933 |
| $203 (-15%) | -$2,879 | -$2,795 | -$2,747 | -$2,741 |
| $215 (-10%) | -$1,845 | -$1,697 | -$1,580 | -$1,549 |
| $226 (-5%) | -$916 | -$697 | -$475 | -$357 |
| $234 (-2%) | -$419 | -$160 | +$129 | +$358 |
| $238 (0%) ← now | -$115 | +$166 | +$497 | +$835 |
| $243 (+2%) | +$166 | +$466 | +$832 | +$1,312 |
| $250 (+5%) | +$545 | +$864 | +$1,267 | +$2,027 |
| $255 (+7%) ← target | +$766 | +$1,092 | +$1,506 | +$2,497 |
| $262 (+10%) | +$1,065 | +$1,392 | +$1,802 | +$2,497 |
| $274 (+15%) | +$1,456 | +$1,765 | +$2,127 | +$2,497 |
| $286 (+20%) | +$1,739 | +$2,011 | +$2,297 | +$2,497 |
Why This Strategy, Why Now
- RSI at 67 — extended, ideal for selling calls
- IV -30% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 15 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
AMZN has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if AMZN approaches the strike before expiry.