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Why NFLX Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Netflix Inc (Communication Services) · $80.14 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
NFLX is trading at $80.14 with RSI at 64 (neutral territory). Options IV is at 38% — 23% below its 30-day average of 49%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
64
IV Today
37.7%
IV vs 30d Avg
-23%
MACD
bullish
ADX
22
MFI
69
The Setup
NFLX Covered Call
LONG STOCK
100 shares @ $80.14
SHORT CALL
$87 Oct '26 · $2.51/sh
Net Cost
$7,763
Max Profit
+$937
Break-even
$77.63
Projected P&L at Target
+$937
(12.1%)
P&L at Expiry
P&L Scenarios
What happens at different NFLX prices by expiry:
| NFLX Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $64 (-20%) | -$1,362 | -$1,354 | -$1,352 | -$1,352 |
| $68 (-15%) | -$980 | -$961 | -$952 | -$951 |
| $72 (-10%) | -$618 | -$581 | -$555 | -$550 |
| $76 (-5%) | -$289 | -$230 | -$172 | -$150 |
| $79 (-2%) | -$110 | -$37 | +$44 | +$91 |
| $80 (0%) ← now | +$0 | +$81 | +$177 | +$251 |
| $82 (+2%) | +$102 | +$191 | +$301 | +$411 |
| $84 (+5%) | +$241 | +$338 | +$465 | +$652 |
| $87 (+9%) ← target | +$382 | +$484 | +$621 | +$937 |
| $88 (+10%) | +$432 | +$535 | +$671 | +$937 |
| $92 (+15%) | +$577 | +$675 | +$800 | +$937 |
| $96 (+20%) | +$682 | +$769 | +$868 | +$937 |
Why This Strategy, Why Now
- RSI at 64 — extended, ideal for selling calls
- IV -23% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 22 — moderate trend
- No squeeze — no imminent breakout
Key Risks
NFLX 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 NFLX approaches the strike before expiry.