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GOOGL Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 63/100
Alphabet Inc Class A (Communication Services) · $344.98 ·
Analysis generated Sep 16, 2026 ·
Data as of market close Sep 16
Quick Take
GOOGL is trading at $344.98 with RSI at 51 (neutral territory). Options IV is at 33% — 30% 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)
51
IV Today
32.6%
IV vs 30d Avg
-30%
MACD
bullish
ADX
8
MFI
45
The Setup
GOOGL Covered Call
LONG STOCK
100 shares @ $344.98
SHORT CALL
$375 Nov '26 · $10.05/sh
Net Cost
$33,493
Max Profit
+$4,007
Break-even
$334.93
Projected P&L at Target
+$4,007
(12.0%)
P&L at Expiry
P&L Scenarios
What happens at different GOOGL prices by expiry:
| GOOGL Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $276 (-20%) | -$5,964 | -$5,914 | -$5,896 | -$5,895 |
| $293 (-15%) | -$4,343 | -$4,235 | -$4,175 | -$4,170 |
| $310 (-10%) | -$2,819 | -$2,626 | -$2,476 | -$2,445 |
| $328 (-5%) | -$1,433 | -$1,139 | -$844 | -$720 |
| $338 (-2%) | -$682 | -$330 | +$66 | +$315 |
| $345 (0%) ← now | -$220 | +$168 | +$630 | +$1,005 |
| $352 (+2%) | +$212 | +$630 | +$1,152 | +$1,695 |
| $362 (+5%) | +$799 | +$1,253 | +$1,846 | +$2,730 |
| $375 (+9%) ← target | +$1,425 | +$1,902 | +$2,537 | +$4,007 |
| $379 (+10%) | +$1,619 | +$2,099 | +$2,737 | +$4,007 |
| $397 (+15%) | +$2,252 | +$2,718 | +$3,310 | +$4,007 |
| $414 (+20%) | +$2,722 | +$3,144 | +$3,634 | +$4,007 |
Why This Strategy, Why Now
- RSI at 51 — neutral-bullish
- IV -30% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 8 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
GOOGL 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 GOOGL 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.