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STX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 63/100
Seagate Technology PLC (Technology) · $850.24 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
STX is trading at $850.24 with RSI at 51 (neutral territory). Options IV is at 74% — 41% below its 30-day average of 127%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
51
IV Today
74.3%
IV vs 30d Avg
-41%
MACD
bullish
ADX
18
MFI
65
The Setup
STX Covered Call
LONG STOCK
100 shares @ $850.24
SHORT CALL
$920 Oct '26 · $72.6/sh
Net Cost
$77,764
Max Profit
+$14,236
Break-even
$777.64
Projected P&L at Target
+$14,236
(18.3%)
P&L at Expiry
P&L Scenarios
What happens at different STX prices by expiry:
| STX Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $680 (-20%) | -$12,016 | -$10,993 | -$10,046 | -$9,745 |
| $723 (-15%) | -$8,810 | -$7,521 | -$6,152 | -$5,494 |
| $765 (-10%) | -$5,870 | -$4,330 | -$2,517 | -$1,242 |
| $808 (-5%) | -$3,207 | -$1,449 | +$776 | +$3,009 |
| $833 (-2%) | -$1,742 | +$124 | +$2,561 | +$5,560 |
| $850 (0%) ← now | -$821 | +$1,107 | +$3,665 | +$7,260 |
| $867 (+2%) | +$57 | +$2,039 | +$4,698 | +$8,960 |
| $893 (+5%) | +$1,296 | +$3,340 | +$6,116 | +$11,511 |
| $920 (+8%) ← target | +$2,517 | +$4,606 | +$7,455 | +$14,236 |
| $935 (+10%) | +$3,156 | +$5,261 | +$8,127 | +$14,236 |
| $978 (+15%) | +$4,777 | +$6,889 | +$9,725 | +$14,236 |
| $1020 (+20%) | +$6,177 | +$8,252 | +$10,957 | +$14,236 |
Why This Strategy, Why Now
- RSI at 51 — neutral-bullish
- IV -41% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
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.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.