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GOOGL Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Alphabet Inc Class A (Communication Services) · $357.18 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
GOOGL is trading at $357.18 with RSI at 47 (neutral territory). Options IV is at 36% — 35% below its 30-day average of 55%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
47
IV Today
35.5%
IV vs 30d Avg
-35%
MACD
bullish
ADX
16
MFI
37
The Setup
GOOGL Covered Call
LONG STOCK
100 shares @ $357.18
SHORT CALL
$385 Sep '26 · $12.33/sh
Net Cost
$34,485
Max Profit
+$4,015
Break-even
$344.85
Projected P&L at Target
+$4,015
(11.6%)
P&L at Expiry
P&L Scenarios
What happens at different GOOGL prices by expiry:
| GOOGL Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $286 (-20%) | -$5,990 | -$5,932 | -$5,912 | -$5,911 |
| $304 (-15%) | -$4,321 | -$4,197 | -$4,131 | -$4,125 |
| $321 (-10%) | -$2,759 | -$2,541 | -$2,376 | -$2,339 |
| $339 (-5%) | -$1,347 | -$1,021 | -$700 | -$553 |
| $350 (-2%) | -$588 | -$200 | +$227 | +$519 |
| $357 (0%) ← now | -$122 | +$302 | +$796 | +$1,233 |
| $364 (+2%) | +$310 | +$766 | +$1,318 | +$1,947 |
| $375 (+5%) | +$896 | +$1,386 | +$2,003 | +$3,019 |
| $385 (+8%) ← target | +$1,373 | +$1,880 | +$2,526 | +$4,015 |
| $393 (+10%) | +$1,707 | +$2,216 | +$2,862 | +$4,015 |
| $411 (+15%) | +$2,325 | +$2,812 | +$3,396 | +$4,015 |
| $429 (+20%) | +$2,778 | +$3,213 | +$3,683 | +$4,015 |
Why This Strategy, Why Now
- RSI at 47
- IV -35% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 16 — 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.