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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) · $347.68 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
GOOGL is trading at $347.68 with RSI at 54 (neutral territory). Options IV is at 32% — 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)
54
IV Today
32.2%
IV vs 30d Avg
-30%
MACD
bullish
ADX
14
MFI
65
The Setup
GOOGL Covered Call
LONG STOCK
100 shares @ $347.68
SHORT CALL
$375 Dec '26 · $11.35/sh
Net Cost
$33,633
Max Profit
+$3,867
Break-even
$336.33
Projected P&L at Target
+$3,867
(11.5%)
P&L at Expiry
P&L Scenarios
What happens at different GOOGL prices by expiry:
| GOOGL Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $278 (-20%) | -$5,870 | -$5,831 | -$5,819 | -$5,819 |
| $296 (-15%) | -$4,221 | -$4,128 | -$4,083 | -$4,080 |
| $313 (-10%) | -$2,669 | -$2,490 | -$2,365 | -$2,342 |
| $330 (-5%) | -$1,261 | -$978 | -$711 | -$603 |
| $341 (-2%) | -$504 | -$159 | +$210 | +$440 |
| $348 (0%) ← now | -$40 | +$342 | +$778 | +$1,135 |
| $355 (+2%) | +$389 | +$803 | +$1,299 | +$1,830 |
| $365 (+5%) | +$968 | +$1,417 | +$1,980 | +$2,873 |
| $375 (+8%) ← target | +$1,447 | +$1,913 | +$2,507 | +$3,867 |
| $382 (+10%) | +$1,761 | +$2,230 | +$2,823 | +$3,867 |
| $400 (+15%) | +$2,352 | +$2,799 | +$3,327 | +$3,867 |
| $417 (+20%) | +$2,775 | +$3,168 | +$3,584 | +$3,867 |
Why This Strategy, Why Now
- RSI at 54 — neutral-bullish
- IV -30% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 14 — 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.