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PRGS Covered Call Analysis: Proceed With Caution Weak · 35/100
PRGS · $26.65 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
This strategy is NOT recommended for PRGS right now
Score 35/100. The technical signals do not support selling covered calls on PRGS at this time.
RSI at 35 — oversold, not ideal for selling calls. IV -18% vs avg — premiums below average, less income. ADX at 39 — strong trend, stock may run past strike.
Check back when conditions improve, or consider a different strategy.
Quick Take
PRGS is trading at $26.65 with RSI at 35 (oversold territory). Options IV is at 55% — 18% below its 30-day average of 66%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
35
IV Today
54.7%
IV vs 30d Avg
-18%
MACD
bullish
ADX
39
MFI
50
The Setup
PRGS Covered Call
LONG STOCK
100 shares @ $26.65
SHORT CALL
$29 Jun '26 · $1.84/sh
Net Cost
$2,481
Max Profit
+$419
Break-even
$24.81
Projected P&L at Target
+$419
(16.9%)
P&L at Expiry
P&L Scenarios
What happens at different PRGS prices by expiry:
| PRGS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $21 (-20%) | -$385 | -$365 | -$352 | -$349 |
| $23 (-15%) | -$275 | -$247 | -$224 | -$216 |
| $24 (-10%) | -$173 | -$138 | -$102 | -$83 |
| $25 (-5%) | -$81 | -$38 | +$11 | +$51 |
| $26 (-2%) | -$31 | +$16 | +$72 | +$131 |
| $27 (0%) ← now | -$0 | +$49 | +$110 | +$184 |
| $27 (+2%) | +$29 | +$81 | +$145 | +$237 |
| $28 (+5%) | +$70 | +$124 | +$193 | +$317 |
| $29 (+9%) ← target | +$118 | +$173 | +$245 | +$419 |
| $29 (+10%) | +$131 | +$187 | +$259 | +$419 |
| $31 (+15%) | +$183 | +$239 | +$309 | +$419 |
| $32 (+20%) | +$225 | +$280 | +$345 | +$419 |
Why This Strategy, Why Now
- RSI at 35 — oversold, not ideal for selling calls
- IV -18% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 39 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
PRGS 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 PRGS approaches the strike before expiry.
ADX at 39 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.