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OS Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
OS · $24.00 ·
Analysis generated Apr 9, 2026 ·
Data as of market close Apr 9
· Market closed — data may be from last trading day
Quick Take
OS is trading at $24.00 with RSI at 73 (overbought territory). Options IV is at 0% — 100% below its 30-day average of 129%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
73
IV Today
0%
IV vs 30d Avg
-100%
MACD
bearish
ADX
23
MFI
81
The Setup
OS Covered Call
LONG STOCK
100 shares @ $24.0
SHORT CALL
$26 Jun '26 · $1.12/sh
Net Cost
$2,288
Max Profit
+$312
Break-even
$22.88
Projected P&L at Target
+$312
(13.7%)
P&L at Expiry
P&L Scenarios
What happens at different OS prices by expiry:
| OS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $19 (-20%) | -$379 | -$372 | -$368 | -$368 |
| $20 (-15%) | -$271 | -$258 | -$249 | -$248 |
| $22 (-10%) | -$170 | -$151 | -$134 | -$128 |
| $23 (-5%) | -$80 | -$53 | -$25 | -$8 |
| $24 (-2%) | -$31 | +$0 | +$35 | +$64 |
| $24 (0%) ← now | -$0 | +$33 | +$72 | +$112 |
| $24 (+2%) | +$28 | +$63 | +$106 | +$160 |
| $25 (+5%) | +$67 | +$104 | +$151 | +$232 |
| $26 (+8%) ← target | +$105 | +$144 | +$193 | +$312 |
| $26 (+10%) | +$122 | +$161 | +$211 | +$312 |
| $28 (+15%) | +$166 | +$205 | +$251 | +$312 |
| $29 (+20%) | +$201 | +$236 | +$276 | +$312 |
Why This Strategy, Why Now
- RSI at 73 — extended, ideal for selling calls
- IV -100% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 23 — moderate trend
- No squeeze — no imminent breakout
- MFI at 81 — money flow confirms overbought
Key Risks
The main risk is missing upside if OS rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.