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Why GOOGL Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Alphabet Inc Class A (Communication Services) · $356.13 ·
Analysis generated Jul 31, 2026 ·
Data as of market close Jul 31
Quick Take
GOOGL is trading at $356.13 with RSI at 54 (neutral territory). Options IV is at 33% — 42% below its 30-day average of 58%. 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
33.3%
IV vs 30d Avg
-43%
MACD
bullish
ADX
14
MFI
49
The Setup
GOOGL Covered Call
LONG STOCK
100 shares @ $356.13
SHORT CALL
$385 Sep '26 · $7.65/sh
Net Cost
$34,848
Max Profit
+$3,652
Break-even
$348.48
Projected P&L at Target
+$3,652
(10.5%)
P&L at Expiry
P&L Scenarios
What happens at different GOOGL prices by expiry:
| GOOGL Price | Today | Aug 17 | Sep 2 | Sep 18 (exp) |
|---|---|---|---|---|
| $285 (-20%) | -$6,373 | -$6,360 | -$6,358 | -$6,358 |
| $303 (-15%) | -$4,635 | -$4,592 | -$4,577 | -$4,577 |
| $321 (-10%) | -$2,967 | -$2,861 | -$2,802 | -$2,796 |
| $338 (-5%) | -$1,430 | -$1,229 | -$1,063 | -$1,016 |
| $349 (-2%) | -$595 | -$332 | -$71 | +$53 |
| $356 (0%) ← now | -$85 | +$218 | +$548 | +$765 |
| $363 (+2%) | +$387 | +$725 | +$1,119 | +$1,477 |
| $374 (+5%) | +$1,018 | +$1,395 | +$1,866 | +$2,546 |
| $385 (+8%) ← target | +$1,573 | +$1,970 | +$2,477 | +$3,652 |
| $392 (+10%) | +$1,862 | +$2,260 | +$2,766 | +$3,652 |
| $410 (+15%) | +$2,464 | +$2,831 | +$3,259 | +$3,652 |
| $427 (+20%) | +$2,865 | +$3,170 | +$3,474 | +$3,652 |
Why This Strategy, Why Now
- RSI at 54 — neutral-bullish
- IV -42% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 14 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
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.