← Best Covered Calls
/ AMZN
AMZN Covered Call Analysis: Proceed With Caution Weak · 58/100
Amazon.com Inc (Consumer Cyclical) · $245.34 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
AMZN is trading at $245.34 with RSI at 52 (neutral territory). Options IV is at 37% — 34% below its 30-day average of 55%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
52
IV Today
36.7%
IV vs 30d Avg
-34%
MACD
bullish
ADX
26
MFI
68
The Setup
AMZN Covered Call
LONG STOCK
100 shares @ $245.34
SHORT CALL
$265 Sep '26 · $9.7/sh
Net Cost
$23,564
Max Profit
+$2,936
Break-even
$235.64
Projected P&L at Target
+$2,936
(12.5%)
P&L at Expiry
P&L Scenarios
What happens at different AMZN prices by expiry:
| AMZN Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $196 (-20%) | -$3,994 | -$3,952 | -$3,938 | -$3,937 |
| $209 (-15%) | -$2,850 | -$2,762 | -$2,715 | -$2,710 |
| $221 (-10%) | -$1,780 | -$1,626 | -$1,509 | -$1,483 |
| $233 (-5%) | -$812 | -$584 | -$360 | -$257 |
| $240 (-2%) | -$291 | -$20 | +$277 | +$479 |
| $245 (0%) ← now | +$30 | +$326 | +$669 | +$970 |
| $250 (+2%) | +$329 | +$646 | +$1,029 | +$1,461 |
| $258 (+5%) | +$733 | +$1,074 | +$1,504 | +$2,197 |
| $265 (+8%) ← target | +$1,088 | +$1,442 | +$1,894 | +$2,936 |
| $270 (+10%) | +$1,295 | +$1,651 | +$2,104 | +$2,936 |
| $282 (+15%) | +$1,728 | +$2,070 | +$2,483 | +$2,936 |
| $294 (+20%) | +$2,047 | +$2,355 | +$2,691 | +$2,936 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -34% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 26 — moderate trend
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
AMZN 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 AMZN approaches the strike before expiry.
ADX at 26 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.