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Why CTAS Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Cintas Corporation (Industrials) · $219.82 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
CTAS is trading at $219.82 with RSI at 62 (neutral territory). Options IV is at 27% — 57% 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)
62
IV Today
26.9%
IV vs 30d Avg
-57%
MACD
bullish
ADX
29
MFI
70
The Setup
CTAS Covered Call
LONG STOCK
100 shares @ $219.82
SHORT CALL
$235 Dec '26 · $3.47/sh
Net Cost
$21,635
Max Profit
+$1,865
Break-even
$216.35
Projected P&L at Target
+$1,865
(8.6%)
P&L at Expiry
P&L Scenarios
What happens at different CTAS prices by expiry:
| CTAS Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $176 (-20%) | -$4,050 | -$4,049 | -$4,049 | -$4,049 |
| $187 (-15%) | -$2,957 | -$2,951 | -$2,950 | -$2,950 |
| $198 (-10%) | -$1,886 | -$1,861 | -$1,851 | -$1,851 |
| $209 (-5%) | -$879 | -$808 | -$760 | -$752 |
| $215 (-2%) | -$332 | -$224 | -$127 | -$93 |
| $220 (0%) ← now | -$0 | +$134 | +$272 | +$347 |
| $224 (+2%) | +$301 | +$458 | +$637 | +$787 |
| $231 (+5%) | +$690 | +$871 | +$1,096 | +$1,446 |
| $235 (+7%) ← target | +$897 | +$1,084 | +$1,322 | +$1,865 |
| $242 (+10%) | +$1,168 | +$1,352 | +$1,577 | +$1,865 |
| $253 (+15%) | +$1,457 | +$1,608 | +$1,764 | +$1,865 |
| $264 (+20%) | +$1,610 | +$1,718 | +$1,810 | +$1,865 |
Why This Strategy, Why Now
- RSI at 62 — extended, ideal for selling calls
- IV -57% 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
CTAS 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 CTAS 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.