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Why REGN Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Regeneron Pharmaceuticals Inc (Healthcare) · $927.89 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
REGN is trading at $927.89 with RSI at 79 (overbought territory). Options IV is at 33% — 55% below its 30-day average of 73%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
79
IV Today
33.1%
IV vs 30d Avg
-55%
MACD
bullish
ADX
28
MFI
75
The Setup
REGN Covered Call
LONG STOCK
100 shares @ $927.89
SHORT CALL
$1000 Dec '26 · $20.2/sh
Net Cost
$90,769
Max Profit
+$9,231
Break-even
$907.69
Projected P&L at Target
+$9,231
(10.2%)
P&L at Expiry
P&L Scenarios
What happens at different REGN prices by expiry:
| REGN Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $742 (-20%) | -$16,589 | -$16,547 | -$16,538 | -$16,538 |
| $789 (-15%) | -$12,080 | -$11,948 | -$11,900 | -$11,898 |
| $835 (-10%) | -$7,773 | -$7,464 | -$7,281 | -$7,259 |
| $882 (-5%) | -$3,818 | -$3,256 | -$2,770 | -$2,619 |
| $909 (-2%) | -$1,684 | -$958 | -$219 | +$164 |
| $928 (0%) ← now | -$377 | +$449 | +$1,366 | +$2,020 |
| $946 (+2%) | +$827 | +$1,741 | +$2,823 | +$3,876 |
| $974 (+5%) | +$2,436 | +$3,446 | +$4,715 | +$6,659 |
| $1000 (+8%) ← target | +$3,710 | +$4,763 | +$6,110 | +$9,231 |
| $1021 (+10%) | +$4,589 | +$5,645 | +$6,981 | +$9,231 |
| $1067 (+15%) | +$6,128 | +$7,098 | +$8,222 | +$9,231 |
| $1113 (+20%) | +$7,159 | +$7,965 | +$8,768 | +$9,231 |
Why This Strategy, Why Now
- RSI at 79 — extended, ideal for selling calls
- IV -55% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 28 — moderate trend
- No squeeze — no imminent breakout
- MFI at 75 — money flow confirms overbought
Key Risks
REGN 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 REGN 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.