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VRNS Covered Call Analysis: Proceed With Caution Weak · 50/100
VRNS · $20.19 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
VRNS is trading at $20.19 with RSI at 34 (oversold territory). Options IV is at 66% — 33% below its 30-day average of 98%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
34
IV Today
65.6%
IV vs 30d Avg
-33%
MACD
bullish
ADX
21
MFI
42
The Setup
VRNS Covered Call
LONG STOCK
100 shares @ $20.19
SHORT CALL
$22 Jun '26 · $1.98/sh
Net Cost
$1,821
Max Profit
+$379
Break-even
$18.21
Projected P&L at Target
+$379
(20.8%)
P&L at Expiry
P&L Scenarios
What happens at different VRNS prices by expiry:
| VRNS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $16 (-20%) | -$264 | -$238 | -$214 | -$206 |
| $17 (-15%) | -$189 | -$156 | -$122 | -$105 |
| $18 (-10%) | -$120 | -$80 | -$36 | -$4 |
| $19 (-5%) | -$57 | -$12 | +$42 | +$97 |
| $20 (-2%) | -$22 | +$26 | +$84 | +$158 |
| $20 (0%) ← now | -$0 | +$49 | +$110 | +$198 |
| $21 (+2%) | +$21 | +$71 | +$135 | +$238 |
| $21 (+5%) | +$50 | +$103 | +$169 | +$299 |
| $22 (+9%) ← target | +$86 | +$140 | +$209 | +$379 |
| $22 (+10%) | +$95 | +$149 | +$218 | +$379 |
| $23 (+15%) | +$134 | +$188 | +$258 | +$379 |
| $24 (+20%) | +$168 | +$222 | +$289 | +$379 |
Why This Strategy, Why Now
- RSI at 34 — oversold, not ideal for selling calls
- IV -33% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 21 — moderate trend
- No squeeze — no imminent breakout
Key Risks
VRNS 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 VRNS approaches the strike before expiry.