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NFLX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Netflix Inc (Communication Services) · $71.71 ·
Analysis generated Jul 31, 2026 ·
Data as of market close Jul 31
Quick Take
NFLX is trading at $71.71 with RSI at 44 (neutral territory). Options IV is at 36% — 36% below its 30-day average of 57%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
44
IV Today
36.0%
IV vs 30d Avg
-37%
MACD
bullish
ADX
29
MFI
52
The Setup
NFLX Covered Call
LONG STOCK
100 shares @ $71.71
SHORT CALL
$77 Sep '26 · $1.86/sh
Net Cost
$6,985
Max Profit
+$715
Break-even
$69.85
Projected P&L at Target
+$715
(10.2%)
P&L at Expiry
P&L Scenarios
What happens at different NFLX prices by expiry:
| NFLX Price | Today | Aug 17 | Sep 2 | Sep 18 (exp) |
|---|---|---|---|---|
| $57 (-20%) | -$1,256 | -$1,250 | -$1,248 | -$1,248 |
| $61 (-15%) | -$915 | -$898 | -$890 | -$890 |
| $65 (-10%) | -$591 | -$558 | -$535 | -$531 |
| $68 (-5%) | -$298 | -$244 | -$193 | -$173 |
| $70 (-2%) | -$139 | -$73 | -$2 | +$43 |
| $72 (0%) ← now | -$43 | +$30 | +$115 | +$186 |
| $73 (+2%) | +$46 | +$125 | +$222 | +$329 |
| $75 (+5%) | +$166 | +$252 | +$361 | +$545 |
| $77 (+7%) ← target | +$248 | +$337 | +$450 | +$715 |
| $79 (+10%) | +$328 | +$416 | +$529 | +$715 |
| $82 (+15%) | +$447 | +$529 | +$626 | +$715 |
| $86 (+20%) | +$530 | +$600 | +$672 | +$715 |
Why This Strategy, Why Now
- RSI at 44
- IV -36% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 29 — 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.
ADX at 29 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.