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LLY Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
LLY · $939.47 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
LLY is trading at $939.47 with RSI at 45 (neutral territory). Options IV is at 38% — 30% below its 30-day average of 55%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
45
IV Today
38.3%
IV vs 30d Avg
-30%
MACD
bullish
ADX
20
MFI
48
The Setup
LLY Covered Call
LONG STOCK
100 shares @ $939.47
SHORT CALL
$1010 Jun '26 · $35.8/sh
Net Cost
$90,367
Max Profit
+$10,633
Break-even
$903.67
Projected P&L at Target
+$10,633
(11.8%)
P&L at Expiry
P&L Scenarios
What happens at different LLY prices by expiry:
| LLY Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $752 (-20%) | -$15,469 | -$15,285 | -$15,213 | -$15,209 |
| $799 (-15%) | -$11,127 | -$10,757 | -$10,539 | -$10,512 |
| $846 (-10%) | -$7,079 | -$6,455 | -$5,952 | -$5,815 |
| $893 (-5%) | -$3,433 | -$2,529 | -$1,611 | -$1,117 |
| $921 (-2%) | -$1,475 | -$415 | +$770 | +$1,701 |
| $939 (0%) ← now | -$274 | +$877 | +$2,228 | +$3,580 |
| $958 (+2%) | +$843 | +$2,069 | +$3,563 | +$5,459 |
| $986 (+5%) | +$2,356 | +$3,665 | +$5,312 | +$8,277 |
| $1010 (+8%) ← target | +$3,475 | +$4,820 | +$6,529 | +$10,633 |
| $1033 (+10%) | +$4,459 | +$5,813 | +$7,519 | +$10,633 |
| $1080 (+15%) | +$6,075 | +$7,369 | +$8,913 | +$10,633 |
| $1127 (+20%) | +$7,271 | +$8,432 | +$9,690 | +$10,633 |
Why This Strategy, Why Now
- RSI at 45
- IV -30% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
LLY 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 LLY approaches the strike before expiry.