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ORLY Covered Call Analysis: Proceed With Caution Weak · 20/100
O’Reilly Automotive Inc (Consumer Cyclical) · $93.01 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for ORLY right now
Score 20/100. The technical signals do not support selling covered calls on ORLY at this time.
RSI at 39 — oversold, not ideal for selling calls. IV -54% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk). TTM Squeeze ON — breakout imminent, risky for capped strategies.
Check back when conditions improve, or consider a different strategy.
Quick Take
ORLY is trading at $93.01 with RSI at 39 (oversold territory). Options IV is at 36% — 54% below its 30-day average of 76%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
39
IV Today
35.6%
IV vs 30d Avg
-54%
MACD
bearish
ADX
13
MFI
46
The Setup
ORLY Covered Call
LONG STOCK
100 shares @ $93.01
SHORT CALL
$100 Jun '26 · $1.96/sh
Net Cost
$9,105
Max Profit
+$895
Break-even
$91.05
Projected P&L at Target
+$895
(9.8%)
P&L at Expiry
P&L Scenarios
What happens at different ORLY prices by expiry:
| ORLY Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $74 (-20%) | -$1,668 | -$1,665 | -$1,664 | -$1,664 |
| $79 (-15%) | -$1,213 | -$1,203 | -$1,199 | -$1,199 |
| $84 (-10%) | -$778 | -$751 | -$736 | -$734 |
| $88 (-5%) | -$378 | -$326 | -$282 | -$269 |
| $91 (-2%) | -$163 | -$94 | -$26 | +$10 |
| $93 (0%) ← now | -$32 | +$47 | +$133 | +$196 |
| $95 (+2%) | +$88 | +$176 | +$279 | +$382 |
| $98 (+5%) | +$247 | +$345 | +$467 | +$661 |
| $100 (+8%) ← target | +$361 | +$463 | +$592 | +$895 |
| $102 (+10%) | +$457 | +$559 | +$686 | +$895 |
| $107 (+15%) | +$602 | +$695 | +$800 | +$895 |
| $112 (+20%) | +$695 | +$772 | +$847 | +$895 |
Why This Strategy, Why Now
- RSI at 39 — oversold, not ideal for selling calls
- IV -54% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 13 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.