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NCNO Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 63/100
NCNO · $16.98 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
NCNO is trading at $16.98 with RSI at 60 (neutral territory). Options IV is at 65% — 16% below its 30-day average of 77%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
60
IV Today
65.1%
IV vs 30d Avg
-16%
MACD
bullish
ADX
37
MFI
72
The Setup
NCNO Covered Call
LONG STOCK
100 shares @ $16.98
SHORT CALL
$19 Jun '26 · $1.36/sh
Net Cost
$1,562
Max Profit
+$288
Break-even
$15.62
Projected P&L at Target
+$288
(18.5%)
P&L at Expiry
P&L Scenarios
What happens at different NCNO prices by expiry:
| NCNO Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $14 (-20%) | -$236 | -$220 | -$207 | -$204 |
| $14 (-15%) | -$169 | -$147 | -$127 | -$119 |
| $15 (-10%) | -$107 | -$80 | -$51 | -$34 |
| $16 (-5%) | -$50 | -$19 | +$18 | +$51 |
| $17 (-2%) | -$20 | +$14 | +$55 | +$102 |
| $17 (0%) ← now | -$0 | +$35 | +$79 | +$136 |
| $17 (+2%) | +$18 | +$55 | +$101 | +$170 |
| $18 (+5%) | +$44 | +$82 | +$130 | +$221 |
| $19 (+9%) ← target | +$74 | +$114 | +$164 | +$288 |
| $19 (+10%) | +$82 | +$122 | +$172 | +$288 |
| $20 (+15%) | +$115 | +$155 | +$205 | +$288 |
| $20 (+20%) | +$143 | +$182 | +$229 | +$288 |
Why This Strategy, Why Now
- RSI at 60 — neutral-bullish
- IV -16% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 37 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 72 — money flow confirms overbought
Key Risks
NCNO 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 NCNO approaches the strike before expiry.
ADX at 37 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.