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AXON Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Axon Enterprise Inc. (Industrials) · $427.77 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
AXON is trading at $427.77 with RSI at 49 (neutral territory). Options IV is at 56% — 32% below its 30-day average of 82%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
49
IV Today
56.0%
IV vs 30d Avg
-32%
MACD
bullish
ADX
29
MFI
57
The Setup
AXON Covered Call
LONG STOCK
100 shares @ $427.77
SHORT CALL
$460 Dec '26 · $32.4/sh
Net Cost
$39,537
Max Profit
+$6,463
Break-even
$395.37
Projected P&L at Target
+$6,463
(16.3%)
P&L at Expiry
P&L Scenarios
What happens at different AXON prices by expiry:
| AXON Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $342 (-20%) | -$5,702 | -$5,474 | -$5,333 | -$5,315 |
| $364 (-15%) | -$3,874 | -$3,525 | -$3,246 | -$3,177 |
| $385 (-10%) | -$2,192 | -$1,712 | -$1,244 | -$1,038 |
| $406 (-5%) | -$681 | -$77 | +$602 | +$1,101 |
| $419 (-2%) | +$137 | +$804 | +$1,601 | +$2,384 |
| $428 (0%) ← now | +$645 | +$1,348 | +$2,213 | +$3,240 |
| $436 (+2%) | +$1,123 | +$1,855 | +$2,778 | +$4,096 |
| $449 (+5%) | +$1,783 | +$2,548 | +$3,531 | +$5,379 |
| $460 (+8%) ← target | +$2,289 | +$3,070 | +$4,079 | +$6,463 |
| $471 (+10%) | +$2,737 | +$3,524 | +$4,536 | +$6,463 |
| $492 (+15%) | +$3,522 | +$4,292 | +$5,249 | +$6,463 |
| $513 (+20%) | +$4,154 | +$4,878 | +$5,721 | +$6,463 |
Why This Strategy, Why Now
- RSI at 49
- IV -32% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 29 — moderate trend
- No squeeze — no imminent breakout
Key Risks
AXON 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 AXON approaches the strike before expiry.
ADX at 29 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.