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ADI Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Analog Devices Inc (Technology) · $361.35 ·
Analysis generated Sep 16, 2026 ·
Data as of market close Sep 16
Quick Take
ADI is trading at $361.35 with RSI at 46 (neutral territory). Options IV is at 37% — 47% below its 30-day average of 70%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
46
IV Today
37.1%
IV vs 30d Avg
-47%
MACD
bullish
ADX
20
MFI
49
The Setup
ADI Covered Call
LONG STOCK
100 shares @ $361.35
SHORT CALL
$390 Nov '26 · $13.32/sh
Net Cost
$34,803
Max Profit
+$4,197
Break-even
$348.03
Projected P&L at Target
+$4,197
(12.1%)
P&L at Expiry
P&L Scenarios
What happens at different ADI prices by expiry:
| ADI Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $289 (-20%) | -$5,977 | -$5,918 | -$5,896 | -$5,895 |
| $307 (-15%) | -$4,290 | -$4,166 | -$4,095 | -$4,088 |
| $325 (-10%) | -$2,711 | -$2,495 | -$2,321 | -$2,281 |
| $343 (-5%) | -$1,283 | -$962 | -$630 | -$475 |
| $354 (-2%) | -$514 | -$133 | +$306 | +$609 |
| $361 (0%) ← now | -$41 | +$375 | +$882 | +$1,332 |
| $369 (+2%) | +$398 | +$845 | +$1,411 | +$2,055 |
| $379 (+5%) | +$994 | +$1,474 | +$2,106 | +$3,139 |
| $390 (+8%) ← target | +$1,503 | +$2,001 | +$2,664 | +$4,197 |
| $397 (+10%) | +$1,822 | +$2,322 | +$2,986 | +$4,197 |
| $416 (+15%) | +$2,456 | +$2,936 | +$3,539 | +$4,197 |
| $434 (+20%) | +$2,923 | +$3,354 | +$3,844 | +$4,197 |
Why This Strategy, Why Now
- RSI at 46
- IV -47% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ADI 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 ADI approaches the strike before expiry.