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Why PANW Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Palo Alto Networks Inc (Technology) · $375.09 ·
Analysis generated Sep 15, 2026 ·
Data as of market close Sep 15
Quick Take
PANW is trading at $375.09 with RSI at 59 (neutral territory). Options IV is at 54% — 25% below its 30-day average of 71%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
59
IV Today
53.6%
IV vs 30d Avg
-25%
MACD
bullish
ADX
18
MFI
55
The Setup
PANW Covered Call
LONG STOCK
100 shares @ $375.09
SHORT CALL
$405 Nov '26 · $26.34/sh
Net Cost
$34,875
Max Profit
+$5,625
Break-even
$348.75
Projected P&L at Target
+$5,625
(16.1%)
P&L at Expiry
P&L Scenarios
What happens at different PANW prices by expiry:
| PANW Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $300 (-20%) | -$5,367 | -$5,101 | -$4,904 | -$4,868 |
| $319 (-15%) | -$3,821 | -$3,444 | -$3,100 | -$2,992 |
| $338 (-10%) | -$2,404 | -$1,913 | -$1,387 | -$1,117 |
| $356 (-5%) | -$1,127 | -$532 | +$182 | +$759 |
| $368 (-2%) | -$433 | +$215 | +$1,031 | +$1,884 |
| $375 (0%) ← now | +$0 | +$678 | +$1,553 | +$2,634 |
| $383 (+2%) | +$409 | +$1,112 | +$2,037 | +$3,384 |
| $394 (+5%) | +$979 | +$1,711 | +$2,690 | +$4,509 |
| $405 (+8%) ← target | +$1,492 | +$2,242 | +$3,251 | +$5,625 |
| $413 (+10%) | +$1,814 | +$2,569 | +$3,584 | +$5,625 |
| $431 (+15%) | +$2,515 | +$3,265 | +$4,248 | +$5,625 |
| $450 (+20%) | +$3,096 | +$3,816 | +$4,716 | +$5,625 |
Why This Strategy, Why Now
- RSI at 59 — neutral-bullish
- IV -25% 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
PANW 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 PANW approaches the strike before expiry.