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DOCU Covered Call Analysis: Proceed With Caution Weak · 20/100
DOCU · $42.89 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
This strategy is NOT recommended for DOCU right now
Score 20/100. The technical signals do not support selling covered calls on DOCU at this time.
RSI at 34 — oversold, not ideal for selling calls. IV -43% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk). TTM Squeeze ON — breakout imminent, risky for capped strategies.
Check back when conditions improve, or consider a different strategy.
Quick Take
DOCU is trading at $42.89 with RSI at 34 (oversold territory). Options IV is at 49% — 43% below its 30-day average of 86%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
34
IV Today
49.3%
IV vs 30d Avg
-43%
MACD
bearish
ADX
16
MFI
46
The Setup
DOCU Covered Call
LONG STOCK
100 shares @ $42.89
SHORT CALL
$46 Jun '26 · $3.0/sh
Net Cost
$3,989
Max Profit
+$611
Break-even
$39.89
Projected P&L at Target
+$611
(15.3%)
P&L at Expiry
P&L Scenarios
What happens at different DOCU prices by expiry:
| DOCU Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $34 (-20%) | -$612 | -$583 | -$562 | -$558 |
| $36 (-15%) | -$435 | -$392 | -$355 | -$343 |
| $39 (-10%) | -$273 | -$218 | -$160 | -$129 |
| $41 (-5%) | -$128 | -$60 | +$18 | +$86 |
| $42 (-2%) | -$49 | +$25 | +$114 | +$214 |
| $43 (0%) ← now | -$0 | +$77 | +$172 | +$300 |
| $44 (+2%) | +$46 | +$126 | +$227 | +$386 |
| $45 (+5%) | +$110 | +$193 | +$299 | +$514 |
| $46 (+7%) ← target | +$154 | +$239 | +$347 | +$611 |
| $47 (+10%) | +$203 | +$289 | +$397 | +$611 |
| $49 (+15%) | +$281 | +$365 | +$469 | +$611 |
| $51 (+20%) | +$345 | +$425 | +$519 | +$611 |
Why This Strategy, Why Now
- RSI at 34 — oversold, not ideal for selling calls
- IV -43% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 16 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.