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TRI Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Thomson Reuters Corp (Industrials) · $118.25 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
TRI is trading at $118.25 with RSI at 66 (neutral territory). Options IV is at 44% — 56% below its 30-day average of 102%. 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)
66
IV Today
44.3%
IV vs 30d Avg
-57%
MACD
bullish
ADX
32
MFI
64
The Setup
TRI Covered Call
LONG STOCK
100 shares @ $118.25
SHORT CALL
$130 Dec '26 · $5.52/sh
Net Cost
$11,273
Max Profit
+$1,727
Break-even
$112.73
Projected P&L at Target
+$1,727
(15.3%)
P&L at Expiry
P&L Scenarios
What happens at different TRI prices by expiry:
| TRI Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $95 (-20%) | -$1,839 | -$1,820 | -$1,813 | -$1,813 |
| $101 (-15%) | -$1,284 | -$1,245 | -$1,224 | -$1,222 |
| $106 (-10%) | -$761 | -$692 | -$641 | -$631 |
| $112 (-5%) | -$281 | -$177 | -$78 | -$39 |
| $116 (-2%) | -$20 | +$105 | +$238 | +$315 |
| $118 (0%) ← now | +$143 | +$281 | +$436 | +$552 |
| $121 (+2%) | +$296 | +$445 | +$622 | +$789 |
| $124 (+5%) | +$505 | +$668 | +$871 | +$1,143 |
| $130 (+10%) ← target | +$800 | +$975 | +$1,200 | +$1,727 |
| $136 (+15%) | +$1,040 | +$1,213 | +$1,430 | +$1,727 |
| $142 (+20%) | +$1,221 | +$1,381 | +$1,567 | +$1,727 |
Why This Strategy, Why Now
- RSI at 66 — extended, ideal for selling calls
- IV -56% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 32 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
TRI 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 TRI approaches the strike before expiry.
ADX at 32 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.