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ZM Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
ZM · $79.24 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
ZM is trading at $79.24 with RSI at 44 (neutral territory). Options IV is at 42% — 33% below its 30-day average of 63%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
44
IV Today
42.2%
IV vs 30d Avg
-33%
MACD
bullish
ADX
22
MFI
70
The Setup
ZM Covered Call
LONG STOCK
100 shares @ $79.24
SHORT CALL
$86 Jun '26 · $3.64/sh
Net Cost
$7,560
Max Profit
+$1,040
Break-even
$75.60
Projected P&L at Target
+$1,040
(13.8%)
P&L at Expiry
P&L Scenarios
What happens at different ZM prices by expiry:
| ZM Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $63 (-20%) | -$1,256 | -$1,233 | -$1,222 | -$1,221 |
| $67 (-15%) | -$898 | -$856 | -$829 | -$825 |
| $71 (-10%) | -$564 | -$500 | -$445 | -$428 |
| $75 (-5%) | -$263 | -$176 | -$85 | -$32 |
| $78 (-2%) | -$100 | +$1 | +$114 | +$206 |
| $79 (0%) ← now | +$0 | +$109 | +$236 | +$364 |
| $81 (+2%) | +$94 | +$209 | +$349 | +$522 |
| $83 (+5%) | +$224 | +$346 | +$500 | +$760 |
| $86 (+9%) ← target | +$358 | +$486 | +$648 | +$1,040 |
| $87 (+10%) | +$408 | +$536 | +$699 | +$1,040 |
| $91 (+15%) | +$556 | +$682 | +$836 | +$1,040 |
| $95 (+20%) | +$670 | +$787 | +$921 | +$1,040 |
Why This Strategy, Why Now
- RSI at 44
- IV -33% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 22 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ZM 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 ZM approaches the strike before expiry.