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PANW Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Palo Alto Networks Inc (Technology) · $155.73 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
PANW is trading at $155.73 with RSI at 44 (neutral territory). Options IV is at 42% — 27% below its 30-day average of 57%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
44
IV Today
41.6%
IV vs 30d Avg
-27%
MACD
bullish
ADX
16
MFI
55
The Setup
PANW Covered Call
LONG STOCK
100 shares @ $155.73
SHORT CALL
$170 Jun '26 · $6.95/sh
Net Cost
$14,878
Max Profit
+$2,122
Break-even
$148.78
Projected P&L at Target
+$2,122
(14.3%)
P&L at Expiry
P&L Scenarios
What happens at different PANW prices by expiry:
| PANW Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $125 (-20%) | -$2,486 | -$2,442 | -$2,421 | -$2,420 |
| $132 (-15%) | -$1,779 | -$1,700 | -$1,649 | -$1,641 |
| $140 (-10%) | -$1,120 | -$997 | -$893 | -$862 |
| $148 (-5%) | -$524 | -$353 | -$179 | -$84 |
| $153 (-2%) | -$199 | -$2 | +$217 | +$384 |
| $156 (0%) ← now | +$2 | +$214 | +$461 | +$695 |
| $159 (+2%) | +$190 | +$416 | +$688 | +$1,006 |
| $164 (+5%) | +$451 | +$692 | +$994 | +$1,474 |
| $170 (+9%) ← target | +$765 | +$1,019 | +$1,342 | +$2,122 |
| $179 (+15%) | +$1,121 | +$1,373 | +$1,684 | +$2,122 |
| $187 (+20%) | +$1,355 | +$1,591 | +$1,864 | +$2,122 |
Why This Strategy, Why Now
- RSI at 44
- IV -27% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 16 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
PANW 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 PANW approaches the strike before expiry.