← Best Covered Calls
/ STX
Why STX Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Seagate Technology PLC (Technology) · $503.13 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
STX is trading at $503.13 with RSI at 69 (neutral territory). Options IV is at 68% — 34% below its 30-day average of 102%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
69
IV Today
67.5%
IV vs 30d Avg
-34%
MACD
bullish
ADX
19
MFI
69
The Setup
STX Covered Call
LONG STOCK
100 shares @ $503.13
SHORT CALL
$540 Jun '26 · $51.0/sh
Net Cost
$45,213
Max Profit
+$8,787
Break-even
$452.13
Projected P&L at Target
+$8,787
(19.4%)
P&L at Expiry
P&L Scenarios
What happens at different STX prices by expiry:
| STX Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $403 (-20%) | -$6,292 | -$5,681 | -$5,145 | -$4,963 |
| $428 (-15%) | -$4,400 | -$3,628 | -$2,849 | -$2,447 |
| $453 (-10%) | -$2,671 | -$1,747 | -$713 | +$69 |
| $478 (-5%) | -$1,111 | -$57 | +$1,211 | +$2,584 |
| $493 (-2%) | -$255 | +$863 | +$2,249 | +$4,094 |
| $503 (0%) ← now | +$282 | +$1,436 | +$2,888 | +$5,100 |
| $513 (+2%) | +$792 | +$1,977 | +$3,484 | +$6,106 |
| $528 (+5%) | +$1,511 | +$2,731 | +$4,297 | +$7,616 |
| $540 (+7%) ← target | +$2,029 | +$3,268 | +$4,862 | +$8,787 |
| $553 (+10%) | +$2,584 | +$3,835 | +$5,441 | +$8,787 |
| $579 (+15%) | +$3,514 | +$4,764 | +$6,339 | +$8,787 |
| $604 (+20%) | +$4,312 | +$5,533 | +$7,021 | +$8,787 |
Why This Strategy, Why Now
- RSI at 69 — extended, ideal for selling calls
- IV -34% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
STX 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 STX approaches the strike before expiry.