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MNST Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Monster Beverage Corp (Consumer Defensive) · $47.34 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
MNST is trading at $47.34 with RSI at 57 (neutral territory). Options IV is at 30% — 25% below its 30-day average of 40%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
57
IV Today
30.1%
IV vs 30d Avg
-25%
MACD
bullish
ADX
26
MFI
65
The Setup
MNST Covered Call
LONG STOCK
100 shares @ $47.34
SHORT CALL
$51 Dec '26 · $0.88/sh
Net Cost
$4,646
Max Profit
+$454
Break-even
$46.46
Projected P&L at Target
+$454
(9.8%)
P&L at Expiry
P&L Scenarios
What happens at different MNST prices by expiry:
| MNST Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $38 (-20%) | -$860 | -$859 | -$859 | -$859 |
| $40 (-15%) | -$625 | -$623 | -$622 | -$622 |
| $43 (-10%) | -$398 | -$389 | -$385 | -$385 |
| $45 (-5%) | -$186 | -$167 | -$152 | -$149 |
| $46 (-2%) | -$71 | -$43 | -$17 | -$7 |
| $47 (0%) ← now | -$0 | +$33 | +$68 | +$88 |
| $48 (+2%) | +$64 | +$103 | +$147 | +$183 |
| $50 (+5%) | +$150 | +$193 | +$248 | +$325 |
| $51 (+8%) ← target | +$214 | +$260 | +$319 | +$454 |
| $52 (+10%) | +$259 | +$305 | +$363 | +$454 |
| $54 (+15%) | +$333 | +$373 | +$419 | +$454 |
| $57 (+20%) | +$377 | +$409 | +$438 | +$454 |
Why This Strategy, Why Now
- RSI at 57 — neutral-bullish
- IV -25% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 26 — moderate trend
- No squeeze — no imminent breakout
Key Risks
MNST 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 MNST approaches the strike before expiry.
ADX at 26 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.