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STX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Seagate Technology PLC (Technology) · $771.81 ·
Analysis generated Sep 16, 2026 ·
Data as of market close Sep 16
Quick Take
STX is trading at $771.81 with RSI at 45 (neutral territory). Options IV is at 69% — 29% below its 30-day average of 98%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
45
IV Today
69.2%
IV vs 30d Avg
-29%
MACD
bullish
ADX
11
MFI
40
The Setup
STX Covered Call
LONG STOCK
100 shares @ $771.81
SHORT CALL
$830 Nov '26 · $72.71/sh
Net Cost
$69,910
Max Profit
+$13,090
Break-even
$699.10
Projected P&L at Target
+$13,090
(18.7%)
P&L at Expiry
P&L Scenarios
What happens at different STX prices by expiry:
| STX Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $617 (-20%) | -$10,020 | -$9,160 | -$8,392 | -$8,165 |
| $656 (-15%) | -$7,075 | -$5,972 | -$4,829 | -$4,306 |
| $695 (-10%) | -$4,381 | -$3,048 | -$1,504 | -$447 |
| $733 (-5%) | -$1,950 | -$418 | +$1,501 | +$3,412 |
| $756 (-2%) | -$618 | +$1,011 | +$3,121 | +$5,727 |
| $772 (0%) ← now | +$217 | +$1,903 | +$4,120 | +$7,271 |
| $787 (+2%) | +$1,012 | +$2,744 | +$5,051 | +$8,815 |
| $810 (+5%) | +$2,126 | +$3,913 | +$6,319 | +$11,130 |
| $830 (+8%) ← target | +$3,001 | +$4,818 | +$7,273 | +$13,090 |
| $849 (+10%) | +$3,790 | +$5,624 | +$8,096 | +$13,090 |
| $888 (+15%) | +$5,225 | +$7,057 | +$9,481 | +$13,090 |
| $926 (+20%) | +$6,452 | +$8,240 | +$10,523 | +$13,090 |
Why This Strategy, Why Now
- RSI at 45
- IV -29% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 11 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
STX 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 STX approaches the strike before expiry.