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ORLY Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
O’Reilly Automotive Inc (Consumer Cyclical) · $88.12 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
ORLY is trading at $88.12 with RSI at 52 (neutral territory). Options IV is at 27% — 31% below its 30-day average of 39%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
52
IV Today
27.1%
IV vs 30d Avg
-31%
MACD
bullish
ADX
28
MFI
31
The Setup
ORLY Covered Call
LONG STOCK
100 shares @ $88.12
SHORT CALL
$95 Dec '26 · $1.41/sh
Net Cost
$8,671
Max Profit
+$829
Break-even
$86.71
Projected P&L at Target
+$829
(9.6%)
P&L at Expiry
P&L Scenarios
What happens at different ORLY prices by expiry:
| ORLY Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $71 (-20%) | -$1,621 | -$1,621 | -$1,621 | -$1,621 |
| $75 (-15%) | -$1,184 | -$1,181 | -$1,181 | -$1,181 |
| $79 (-10%) | -$754 | -$744 | -$740 | -$740 |
| $84 (-5%) | -$349 | -$321 | -$303 | -$300 |
| $86 (-2%) | -$126 | -$83 | -$46 | -$35 |
| $88 (0%) ← now | +$10 | +$63 | +$116 | +$141 |
| $90 (+2%) | +$134 | +$197 | +$266 | +$317 |
| $93 (+5%) | +$298 | +$371 | +$462 | +$582 |
| $95 (+8%) ← target | +$424 | +$502 | +$602 | +$829 |
| $97 (+10%) | +$504 | +$582 | +$680 | +$829 |
| $101 (+15%) | +$635 | +$703 | +$776 | +$829 |
| $106 (+20%) | +$709 | +$759 | +$804 | +$829 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -31% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 28 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ORLY 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 ORLY approaches the strike before expiry.
ADX at 28 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.