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NFLX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Netflix Inc (Communication Services) · $103.01 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
NFLX is trading at $103.01 with RSI at 65 (neutral territory). Options IV is at 34% — 36% below its 30-day average of 53%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
65
IV Today
34.3%
IV vs 30d Avg
-36%
MACD
bullish
ADX
30
MFI
62
The Setup
NFLX Covered Call
LONG STOCK
100 shares @ $103.01
SHORT CALL
$110 Jun '26 · $3.6/sh
Net Cost
$9,941
Max Profit
+$1,059
Break-even
$99.41
Projected P&L at Target
+$1,059
(10.7%)
P&L at Expiry
P&L Scenarios
What happens at different NFLX prices by expiry:
| NFLX Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $82 (-20%) | -$1,724 | -$1,707 | -$1,700 | -$1,700 |
| $88 (-15%) | -$1,244 | -$1,208 | -$1,187 | -$1,185 |
| $93 (-10%) | -$797 | -$734 | -$683 | -$670 |
| $98 (-5%) | -$396 | -$302 | -$207 | -$155 |
| $101 (-2%) | -$182 | -$71 | +$54 | +$154 |
| $103 (0%) ← now | -$51 | +$69 | +$212 | +$360 |
| $105 (+2%) | +$69 | +$198 | +$356 | +$566 |
| $108 (+5%) | +$232 | +$369 | +$542 | +$875 |
| $110 (+7%) ← target | +$318 | +$458 | +$635 | +$1,059 |
| $113 (+10%) | +$454 | +$594 | +$770 | +$1,059 |
| $118 (+15%) | +$621 | +$752 | +$906 | +$1,059 |
| $124 (+20%) | +$741 | +$856 | +$977 | +$1,059 |
Why This Strategy, Why Now
- RSI at 65 — extended, ideal for selling calls
- IV -36% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 30 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
NFLX 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 NFLX approaches the strike before expiry.
ADX at 30 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.