ServiceNow Inc.
Generate consistent income from ServiceNow (NOW) with covered calls and cash secured puts. Premium enterprise AI software company offers solid premiums with quality fundamentals.
Why NOW for Covered Calls & Cash Secured Puts?
ServiceNow is a best-in-class enterprise software company with 97%+ subscription revenue retention. The company is aggressively deploying AI agents across IT, HR, and business workflows. NOW's AI product (Now Assist) is targeting $1B in annual contract value by end of 2026. The stock offers solid premium with less volatility than pure AI plays, making it ideal for quality-focused income investors. Recession-resistant enterprise spending provides stability.
Example Covered Call Trade
Recommended Strategy for NOW
Sell monthly covered calls 5-8% OTM for consistent income with upside participation. NOW works well for the wheel strategy given strong fundamentals. Consider selling puts during market weakness to accumulate shares at discount. Avoid earnings week for new positions.
Risks to Consider
- High share price requires ~$105K capital for 100 shares
- Enterprise spending slowdown in recession
- Competition from Microsoft, Salesforce
- AI agent adoption pace uncertainty
- Valuation premium to software peers
- No dividend
Analyze NOW Covered Calls Now
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