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MSFT Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Microsoft Corporation (Technology) · $385.10 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
MSFT is trading at $385.10 with RSI at 48 (neutral territory). Options IV is at 34% — 34% below its 30-day average of 51%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
48
IV Today
33.6%
IV vs 30d Avg
-34%
MACD
bullish
ADX
18
MFI
66
The Setup
MSFT Covered Call
LONG STOCK
100 shares @ $385.1
SHORT CALL
$415 Sep '26 · $15.68/sh
Net Cost
$36,942
Max Profit
+$4,558
Break-even
$369.42
Projected P&L at Target
+$4,558
(12.3%)
P&L at Expiry
P&L Scenarios
What happens at different MSFT prices by expiry:
| MSFT Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $308 (-20%) | -$6,197 | -$6,149 | -$6,134 | -$6,134 |
| $327 (-15%) | -$4,378 | -$4,267 | -$4,212 | -$4,208 |
| $347 (-10%) | -$2,669 | -$2,461 | -$2,312 | -$2,283 |
| $366 (-5%) | -$1,120 | -$796 | -$487 | -$357 |
| $377 (-2%) | -$287 | +$104 | +$526 | +$798 |
| $385 (0%) ← now | +$223 | +$654 | +$1,150 | +$1,568 |
| $393 (+2%) | +$695 | +$1,161 | +$1,722 | +$2,338 |
| $404 (+5%) | +$1,333 | +$1,837 | +$2,469 | +$3,494 |
| $415 (+8%) ← target | +$1,845 | +$2,366 | +$3,031 | +$4,558 |
| $424 (+10%) | +$2,208 | +$2,732 | +$3,396 | +$4,558 |
| $443 (+15%) | +$2,864 | +$3,362 | +$3,954 | +$4,558 |
| $462 (+20%) | +$3,335 | +$3,775 | +$4,241 | +$4,558 |
Why This Strategy, Why Now
- RSI at 48
- IV -34% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
MSFT 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 MSFT approaches the strike before expiry.