← Best Covered Calls
/ CEG
Why CEG Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Constellation Energy Corp (Utilities) · $300.40 ·
Analysis generated Oct 6, 2026 ·
Data as of market close Oct 6
Quick Take
CEG is trading at $300.40 with RSI at 69 (neutral territory). Options IV is at 47% — 19% below its 30-day average of 58%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
69
IV Today
47.0%
IV vs 30d Avg
-19%
MACD
bullish
ADX
22
MFI
60
The Setup
CEG Covered Call
LONG STOCK
100 shares @ $300.4
SHORT CALL
$325 Dec '26 · $17.32/sh
Net Cost
$28,308
Max Profit
+$4,192
Break-even
$283.08
Projected P&L at Target
+$4,192
(14.8%)
P&L at Expiry
P&L Scenarios
What happens at different CEG prices by expiry:
| CEG Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $240 (-20%) | -$4,519 | -$4,371 | -$4,286 | -$4,276 |
| $255 (-15%) | -$3,220 | -$2,989 | -$2,813 | -$2,774 |
| $270 (-10%) | -$2,023 | -$1,699 | -$1,393 | -$1,272 |
| $285 (-5%) | -$946 | -$531 | -$76 | +$230 |
| $294 (-2%) | -$363 | +$100 | +$642 | +$1,131 |
| $300 (0%) ← now | -$0 | +$489 | +$1,083 | +$1,732 |
| $306 (+2%) | +$341 | +$853 | +$1,490 | +$2,333 |
| $315 (+5%) | +$811 | +$1,350 | +$2,036 | +$3,234 |
| $325 (+8%) ← target | +$1,260 | +$1,815 | +$2,528 | +$4,192 |
| $330 (+10%) | +$1,491 | +$2,050 | +$2,767 | +$4,192 |
| $345 (+15%) | +$2,048 | +$2,601 | +$3,286 | +$4,192 |
| $360 (+20%) | +$2,496 | +$3,019 | +$3,630 | +$4,192 |
Why This Strategy, Why Now
- RSI at 69 — extended, ideal for selling calls
- IV -19% 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
CEG 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 CEG approaches the strike before expiry.