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PYPL Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 63/100
PayPal Holdings Inc (Financial Services) · $57.01 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
PYPL is trading at $57.01 with RSI at 57 (neutral territory). Options IV is at 22% — 65% below its 30-day average of 62%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
57
IV Today
21.9%
IV vs 30d Avg
-65%
MACD
bullish
ADX
19
MFI
61
The Setup
PYPL Covered Call
LONG STOCK
100 shares @ $57.01
SHORT CALL
$62 Dec '26 · $0.98/sh
Net Cost
$5,603
Max Profit
+$597
Break-even
$56.03
Projected P&L at Target
+$597
(10.7%)
P&L at Expiry
P&L Scenarios
What happens at different PYPL prices by expiry:
| PYPL Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $46 (-20%) | -$1,043 | -$1,042 | -$1,042 | -$1,042 |
| $48 (-15%) | -$761 | -$758 | -$757 | -$757 |
| $51 (-10%) | -$486 | -$476 | -$472 | -$472 |
| $54 (-5%) | -$229 | -$206 | -$190 | -$187 |
| $56 (-2%) | -$87 | -$55 | -$26 | -$16 |
| $57 (0%) ← now | -$0 | +$39 | +$78 | +$98 |
| $58 (+2%) | +$80 | +$126 | +$176 | +$212 |
| $60 (+5%) | +$188 | +$240 | +$305 | +$383 |
| $62 (+9%) ← target | +$298 | +$356 | +$429 | +$597 |
| $63 (+10%) | +$329 | +$387 | +$460 | +$597 |
| $66 (+15%) | +$427 | +$480 | +$541 | +$597 |
| $68 (+20%) | +$489 | +$532 | +$573 | +$597 |
Why This Strategy, Why Now
- RSI at 57 — neutral-bullish
- IV -65% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
PYPL 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 PYPL approaches the strike before expiry.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.