← Best Covered Calls
/ SHOP
SHOP Covered Call Analysis: Proceed With Caution Weak · 35/100
Shopify Inc (Technology) · $110.79 ·
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 SHOP right now
Score 35/100. The technical signals do not support selling covered calls on SHOP at this time.
RSI at 38 — oversold, not ideal for selling calls. IV -26% 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
SHOP is trading at $110.79 with RSI at 38 (oversold territory). Options IV is at 58% — 26% below its 30-day average of 79%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
38
IV Today
57.8%
IV vs 30d Avg
-27%
MACD
bearish
ADX
17
MFI
42
The Setup
SHOP Covered Call
LONG STOCK
100 shares @ $110.79
SHORT CALL
$120 Jun '26 · $8.65/sh
Net Cost
$10,214
Max Profit
+$1,786
Break-even
$102.14
Projected P&L at Target
+$1,786
(17.5%)
P&L at Expiry
P&L Scenarios
What happens at different SHOP prices by expiry:
| SHOP Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $89 (-20%) | -$1,541 | -$1,443 | -$1,369 | -$1,351 |
| $94 (-15%) | -$1,097 | -$965 | -$844 | -$797 |
| $100 (-10%) | -$689 | -$523 | -$348 | -$243 |
| $105 (-5%) | -$322 | -$125 | +$104 | +$311 |
| $109 (-2%) | -$121 | +$92 | +$349 | +$643 |
| $111 (0%) ← now | +$5 | +$226 | +$501 | +$865 |
| $113 (+2%) | +$124 | +$354 | +$642 | +$1,087 |
| $116 (+5%) | +$291 | +$529 | +$833 | +$1,419 |
| $120 (+8%) ← target | +$458 | +$703 | +$1,017 | +$1,786 |
| $122 (+10%) | +$537 | +$784 | +$1,099 | +$1,786 |
| $127 (+15%) | +$748 | +$994 | +$1,304 | +$1,786 |
| $133 (+20%) | +$925 | +$1,164 | +$1,453 | +$1,786 |
Why This Strategy, Why Now
- RSI at 38 — oversold, not ideal for selling calls
- IV -26% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 17 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if SHOP rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.