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Why ADBE Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Adobe Systems Incorporated (Technology) · $223.64 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
ADBE is trading at $223.64 with RSI at 54 (neutral territory). Options IV is at 43% — 36% below its 30-day average of 67%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
54
IV Today
42.6%
IV vs 30d Avg
-36%
MACD
bullish
ADX
18
MFI
70
The Setup
ADBE Covered Call
LONG STOCK
100 shares @ $223.64
SHORT CALL
$240 Sep '26 · $12.4/sh
Net Cost
$21,124
Max Profit
+$2,876
Break-even
$211.24
Projected P&L at Target
+$2,876
(13.6%)
P&L at Expiry
P&L Scenarios
What happens at different ADBE prices by expiry:
| ADBE Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $179 (-20%) | -$3,390 | -$3,293 | -$3,239 | -$3,233 |
| $190 (-15%) | -$2,416 | -$2,258 | -$2,140 | -$2,115 |
| $201 (-10%) | -$1,518 | -$1,291 | -$1,079 | -$996 |
| $212 (-5%) | -$714 | -$420 | -$98 | +$122 |
| $219 (-2%) | -$281 | +$47 | +$434 | +$793 |
| $224 (0%) ← now | -$13 | +$334 | +$758 | +$1,240 |
| $228 (+2%) | +$237 | +$601 | +$1,055 | +$1,687 |
| $235 (+5%) | +$582 | +$963 | +$1,450 | +$2,358 |
| $240 (+7%) ← target | +$822 | +$1,211 | +$1,711 | +$2,876 |
| $246 (+10%) | +$1,073 | +$1,466 | +$1,966 | +$2,876 |
| $257 (+15%) | +$1,470 | +$1,852 | +$2,320 | +$2,876 |
| $268 (+20%) | +$1,782 | +$2,138 | +$2,543 | +$2,876 |
Why This Strategy, Why Now
- RSI at 54 — neutral-bullish
- IV -36% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
ADBE 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 ADBE approaches the strike before expiry.