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PAYX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Paychex Inc (Technology) · $112.12 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
PAYX is trading at $112.12 with RSI at 53 (neutral territory). Options IV is at 36% — 26% below its 30-day average of 48%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
53
IV Today
35.6%
IV vs 30d Avg
-26%
MACD
bullish
ADX
24
MFI
67
The Setup
PAYX Covered Call
LONG STOCK
100 shares @ $112.12
SHORT CALL
$120 Dec '26 · $3.05/sh
Net Cost
$10,907
Max Profit
+$1,093
Break-even
$109.07
Projected P&L at Target
+$1,093
(10.0%)
P&L at Expiry
P&L Scenarios
What happens at different PAYX prices by expiry:
| PAYX Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $90 (-20%) | -$1,939 | -$1,937 | -$1,937 | -$1,937 |
| $95 (-15%) | -$1,388 | -$1,379 | -$1,377 | -$1,377 |
| $101 (-10%) | -$854 | -$829 | -$817 | -$816 |
| $107 (-5%) | -$361 | -$309 | -$267 | -$256 |
| $110 (-2%) | -$95 | -$23 | +$48 | +$81 |
| $112 (0%) ← now | +$66 | +$151 | +$243 | +$305 |
| $114 (+2%) | +$213 | +$309 | +$421 | +$529 |
| $118 (+5%) | +$407 | +$514 | +$648 | +$866 |
| $120 (+7%) ← target | +$518 | +$629 | +$769 | +$1,093 |
| $123 (+10%) | +$654 | +$764 | +$900 | +$1,093 |
| $129 (+15%) | +$818 | +$913 | +$1,017 | +$1,093 |
| $135 (+20%) | +$917 | +$991 | +$1,057 | +$1,093 |
Why This Strategy, Why Now
- RSI at 53 — neutral-bullish
- IV -26% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 24 — moderate trend
- No squeeze — no imminent breakout
Key Risks
PAYX 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 PAYX approaches the strike before expiry.