← Best Covered Calls
/ KO
Why KO Is an Excellent Covered Call Candidate Right Now Strong · 78/100
KO · $77.47 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
KO is trading at $77.47 with RSI at 57 (neutral territory). Options IV is at 22% — 42% below its 30-day average of 38%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
57
IV Today
22.0%
IV vs 30d Avg
-42%
MACD
bullish
ADX
16
MFI
41
The Setup
KO Covered Call
LONG STOCK
100 shares @ $77.47
SHORT CALL
$84 Jun '26 · $0.83/sh
Net Cost
$7,664
Max Profit
+$736
Break-even
$76.64
Projected P&L at Target
+$736
(9.6%)
P&L at Expiry
P&L Scenarios
What happens at different KO prices by expiry:
| KO Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $62 (-20%) | -$1,466 | -$1,466 | -$1,466 | -$1,466 |
| $66 (-15%) | -$1,080 | -$1,079 | -$1,079 | -$1,079 |
| $70 (-10%) | -$698 | -$693 | -$692 | -$692 |
| $74 (-5%) | -$330 | -$313 | -$305 | -$304 |
| $76 (-2%) | -$126 | -$97 | -$77 | -$72 |
| $77 (0%) ← now | +$0 | +$38 | +$71 | +$83 |
| $79 (+2%) | +$116 | +$163 | +$210 | +$238 |
| $81 (+5%) | +$267 | +$325 | +$393 | +$470 |
| $84 (+8%) ← target | +$404 | +$469 | +$550 | +$736 |
| $85 (+10%) | +$455 | +$520 | +$600 | +$736 |
| $89 (+15%) | +$568 | +$625 | +$686 | +$736 |
| $93 (+20%) | +$626 | +$670 | +$708 | +$736 |
Why This Strategy, Why Now
- RSI at 57 — neutral-bullish
- IV -42% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 16 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
KO 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 KO approaches the strike before expiry.