S Covered Call Analysis: Proceed With Caution Weak · 30/100
S · $11.94 ·
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 S right now
Score 30/100. The technical signals do not support selling covered calls on S at this time.
RSI at 35 — oversold, not ideal for selling calls. IV -40% 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
S is trading at $11.94 with RSI at 35 (oversold territory). Options IV is at 60% — 40% below its 30-day average of 101%. 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
60.3%
IV vs 30d Avg
-41%
MACD
bearish
ADX
28
MFI
59
The Setup
S Covered Call
LONG STOCK
100 shares @ $11.94
SHORT CALL
$13 Jun '26 · $0.85/sh
Net Cost
$1,109
Max Profit
+$191
Break-even
$11.09
Projected P&L at Target
+$191
(17.2%)
P&L at Expiry
P&L Scenarios
What happens at different S prices by expiry:
| S Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $10 (-20%) | -$168 | -$160 | -$155 | -$154 |
| $10 (-15%) | -$118 | -$106 | -$97 | -$94 |
| $11 (-10%) | -$71 | -$56 | -$41 | -$34 |
| $11 (-5%) | -$30 | -$12 | +$9 | +$25 |
| $12 (-2%) | -$8 | +$13 | +$37 | +$61 |
| $12 (0%) ← now | +$7 | +$28 | +$54 | +$85 |
| $12 (+2%) | +$20 | +$42 | +$70 | +$109 |
| $13 (+5%) | +$39 | +$62 | +$92 | +$145 |
| $13 (+9%) ← target | +$60 | +$85 | +$116 | +$191 |
| $13 (+10%) | +$66 | +$90 | +$121 | +$191 |
| $14 (+15%) | +$89 | +$113 | +$144 | +$191 |
| $14 (+20%) | +$108 | +$132 | +$160 | +$191 |
Why This Strategy, Why Now
- RSI at 35 — oversold, not ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 28 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ADX at 28 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.