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XEL Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Xcel Energy Inc (Utilities) · $79.82 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
XEL is trading at $79.82 with RSI at 69 (neutral territory). Options IV is at 22% — 49% below its 30-day average of 43%. 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)
69
IV Today
21.7%
IV vs 30d Avg
-49%
MACD
bullish
ADX
35
MFI
69
The Setup
XEL Covered Call
LONG STOCK
100 shares @ $79.82
SHORT CALL
$86 Dec '26 · $0.87/sh
Net Cost
$7,895
Max Profit
+$705
Break-even
$78.95
Projected P&L at Target
+$705
(8.9%)
P&L at Expiry
P&L Scenarios
What happens at different XEL prices by expiry:
| XEL Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $64 (-20%) | -$1,509 | -$1,509 | -$1,509 | -$1,509 |
| $68 (-15%) | -$1,111 | -$1,110 | -$1,110 | -$1,110 |
| $72 (-10%) | -$717 | -$712 | -$711 | -$711 |
| $76 (-5%) | -$338 | -$322 | -$313 | -$312 |
| $78 (-2%) | -$129 | -$100 | -$78 | -$73 |
| $80 (0%) ← now | -$0 | +$38 | +$73 | +$87 |
| $81 (+2%) | +$118 | +$165 | +$216 | +$247 |
| $84 (+5%) | +$270 | +$328 | +$399 | +$486 |
| $86 (+8%) ← target | +$383 | +$445 | +$525 | +$705 |
| $88 (+10%) | +$456 | +$519 | +$596 | +$705 |
| $92 (+15%) | +$565 | +$616 | +$670 | +$705 |
| $96 (+20%) | +$619 | +$655 | +$686 | +$705 |
Why This Strategy, Why Now
- RSI at 69 — extended, ideal for selling calls
- IV -49% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 35 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
XEL 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 XEL approaches the strike before expiry.
ADX at 35 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.