← Best Covered Calls
/ META
Why META Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Meta Platforms Inc. (Communication Services) · $670.24 ·
Analysis generated Sep 15, 2026 ·
Data as of market close Sep 15
Quick Take
META is trading at $670.24 with RSI at 70 (overbought territory). Options IV is at 40% — 24% below its 30-day average of 52%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
70
IV Today
40.2%
IV vs 30d Avg
-24%
MACD
bullish
ADX
22
MFI
76
The Setup
META Covered Call
LONG STOCK
100 shares @ $670.24
SHORT CALL
$720 Nov '26 · $31.5/sh
Net Cost
$63,874
Max Profit
+$8,126
Break-even
$638.74
Projected P&L at Target
+$8,126
(12.7%)
P&L at Expiry
P&L Scenarios
What happens at different META prices by expiry:
| META Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $536 (-20%) | -$10,459 | -$10,318 | -$10,258 | -$10,255 |
| $570 (-15%) | -$7,375 | -$7,100 | -$6,925 | -$6,904 |
| $603 (-10%) | -$4,505 | -$4,049 | -$3,657 | -$3,552 |
| $637 (-5%) | -$1,923 | -$1,271 | -$571 | -$201 |
| $657 (-2%) | -$537 | +$223 | +$1,120 | +$1,810 |
| $670 (0%) ← now | +$314 | +$1,136 | +$2,153 | +$3,150 |
| $684 (+2%) | +$1,106 | +$1,979 | +$3,100 | +$4,490 |
| $704 (+5%) | +$2,180 | +$3,109 | +$4,340 | +$6,501 |
| $720 (+7%) ← target | +$2,949 | +$3,903 | +$5,176 | +$8,126 |
| $737 (+10%) | +$3,674 | +$4,634 | +$5,905 | +$8,126 |
| $771 (+15%) | +$4,828 | +$5,746 | +$6,897 | +$8,126 |
| $804 (+20%) | +$5,687 | +$6,513 | +$7,453 | +$8,126 |
Why This Strategy, Why Now
- RSI at 70 — extended, ideal for selling calls
- IV -24% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 22 — moderate trend
- No squeeze — no imminent breakout
- MFI at 76 — money flow confirms overbought
Key Risks
META 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 META approaches the strike before expiry.