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NOW Covered Call Analysis: Proceed With Caution Weak · 30/100
NOW · $83.00 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for NOW right now
Score 30/100. The technical signals do not support selling covered calls on NOW at this time.
RSI at 28 — oversold, not ideal for selling calls. IV -20% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk).
Check back when conditions improve, or consider a different strategy.
Quick Take
NOW is trading at $83.00 with RSI at 28 (oversold territory). Options IV is at 57% — 20% below its 30-day average of 71%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
28
IV Today
56.8%
IV vs 30d Avg
-20%
MACD
bearish
ADX
26
MFI
27
The Setup
NOW Covered Call
LONG STOCK
100 shares @ $83.0
SHORT CALL
$90 Jun '26 · $6.68/sh
Net Cost
$7,632
Max Profit
+$1,368
Break-even
$76.32
Projected P&L at Target
+$1,368
(17.9%)
P&L at Expiry
P&L Scenarios
What happens at different NOW prices by expiry:
| NOW Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $66 (-20%) | -$1,093 | -$1,037 | -$999 | -$992 |
| $71 (-15%) | -$747 | -$667 | -$598 | -$577 |
| $75 (-10%) | -$430 | -$323 | -$216 | -$162 |
| $79 (-5%) | -$143 | -$13 | +$135 | +$253 |
| $81 (-2%) | +$13 | +$156 | +$325 | +$502 |
| $83 (0%) ← now | +$110 | +$260 | +$443 | +$668 |
| $85 (+2%) | +$202 | +$358 | +$552 | +$834 |
| $87 (+5%) | +$331 | +$493 | +$700 | +$1,083 |
| $90 (+8%) ← target | +$463 | +$630 | +$845 | +$1,368 |
| $91 (+10%) | +$518 | +$687 | +$902 | +$1,368 |
| $95 (+15%) | +$676 | +$844 | +$1,053 | +$1,368 |
| $100 (+20%) | +$806 | +$967 | +$1,160 | +$1,368 |
Why This Strategy, Why Now
- RSI at 28 — oversold, not ideal for selling calls
- IV -20% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 26 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ADX at 26 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.