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AMZN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 63/100
Amazon.com Inc (Consumer Cyclical) · $256.29 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
AMZN is trading at $256.29 with RSI at 55 (neutral territory). Options IV is at 34% — 26% below its 30-day average of 46%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
55
IV Today
33.8%
IV vs 30d Avg
-26%
MACD
bullish
ADX
9
MFI
64
The Setup
AMZN Covered Call
LONG STOCK
100 shares @ $256.29
SHORT CALL
$275 Dec '26 · $9.52/sh
Net Cost
$24,677
Max Profit
+$2,823
Break-even
$246.77
Projected P&L at Target
+$2,823
(11.4%)
P&L at Expiry
P&L Scenarios
What happens at different AMZN prices by expiry:
| AMZN Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $205 (-20%) | -$4,220 | -$4,185 | -$4,174 | -$4,174 |
| $218 (-15%) | -$3,013 | -$2,935 | -$2,895 | -$2,892 |
| $231 (-10%) | -$1,883 | -$1,739 | -$1,633 | -$1,611 |
| $243 (-5%) | -$863 | -$642 | -$426 | -$329 |
| $251 (-2%) | -$318 | -$52 | +$240 | +$439 |
| $256 (0%) ← now | +$16 | +$308 | +$648 | +$952 |
| $261 (+2%) | +$325 | +$639 | +$1,021 | +$1,465 |
| $269 (+5%) | +$739 | +$1,077 | +$1,503 | +$2,233 |
| $275 (+7%) ← target | +$1,019 | +$1,367 | +$1,809 | +$2,823 |
| $282 (+10%) | +$1,306 | +$1,655 | +$2,095 | +$2,823 |
| $295 (+15%) | +$1,729 | +$2,058 | +$2,445 | +$2,823 |
| $308 (+20%) | +$2,030 | +$2,319 | +$2,622 | +$2,823 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -26% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 9 — range-bound, perfect for selling calls
- 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.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.