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SPSC Covered Call Analysis: Proceed With Caution Weak · 35/100
SPSC · $51.45 ·
Analysis generated Nov 26, 2025 ·
Data as of market close Nov 26
· Market closed — data may be from last trading day
This strategy is NOT recommended for SPSC right now
Score 35/100. The technical signals do not support selling covered calls on SPSC at this time.
RSI at 36 — oversold, not ideal for selling calls. IV -34% vs avg — premiums below average, less income. ADX at 43 — strong trend, stock may run past strike.
Check back when conditions improve, or consider a different strategy.
Quick Take
SPSC is trading at $51.45 with RSI at 36 (oversold territory). Options IV is at 44% — 34% below its 30-day average of 67%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
36
IV Today
44.3%
IV vs 30d Avg
-34%
MACD
bullish
ADX
43
MFI
61
The Setup
SPSC Covered Call
LONG STOCK
100 shares @ $51.45
SHORT CALL
$56 Jun '26 · $1.17/sh
Net Cost
$5,028
Max Profit
+$572
Break-even
$50.28
Projected P&L at Target
+$572
(11.4%)
P&L at Expiry
P&L Scenarios
What happens at different SPSC prices by expiry:
| SPSC Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $41 (-20%) | -$914 | -$912 | -$912 | -$912 |
| $44 (-15%) | -$663 | -$657 | -$655 | -$655 |
| $46 (-10%) | -$420 | -$406 | -$398 | -$397 |
| $49 (-5%) | -$196 | -$168 | -$146 | -$140 |
| $50 (-2%) | -$75 | -$38 | -$2 | +$14 |
| $51 (0%) ← now | +$0 | +$43 | +$89 | +$117 |
| $52 (+2%) | +$70 | +$118 | +$173 | +$220 |
| $54 (+5%) | +$163 | +$218 | +$284 | +$374 |
| $56 (+9%) ← target | +$263 | +$322 | +$396 | +$572 |
| $57 (+10%) | +$289 | +$348 | +$423 | +$572 |
| $59 (+15%) | +$379 | +$435 | +$501 | +$572 |
| $62 (+20%) | +$439 | +$488 | +$537 | +$572 |
Why This Strategy, Why Now
- RSI at 36 — oversold, not ideal for selling calls
- IV -34% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 43 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
SPSC 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 SPSC approaches the strike before expiry.
ADX at 43 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.