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ADI Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Analog Devices Inc (Technology) · $417.11 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
ADI is trading at $417.11 with RSI at 55 (neutral territory). Options IV is at 42% — 42% below its 30-day average of 72%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
55
IV Today
42.1%
IV vs 30d Avg
-42%
MACD
bullish
ADX
20
MFI
39
The Setup
ADI Covered Call
LONG STOCK
100 shares @ $417.11
SHORT CALL
$450 Dec '26 · $12.67/sh
Net Cost
$40,444
Max Profit
+$4,556
Break-even
$404.44
Projected P&L at Target
+$4,556
(11.3%)
P&L at Expiry
P&L Scenarios
What happens at different ADI prices by expiry:
| ADI Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $334 (-20%) | -$7,137 | -$7,090 | -$7,075 | -$7,075 |
| $355 (-15%) | -$5,160 | -$5,048 | -$4,994 | -$4,990 |
| $375 (-10%) | -$3,295 | -$3,084 | -$2,932 | -$2,904 |
| $396 (-5%) | -$1,601 | -$1,268 | -$950 | -$819 |
| $409 (-2%) | -$687 | -$282 | +$156 | +$433 |
| $417 (0%) ← now | -$126 | +$321 | +$837 | +$1,267 |
| $425 (+2%) | +$394 | +$878 | +$1,464 | +$2,101 |
| $438 (+5%) | +$1,098 | +$1,622 | +$2,285 | +$3,353 |
| $450 (+8%) ← target | +$1,686 | +$2,230 | +$2,928 | +$4,556 |
| $459 (+10%) | +$2,065 | +$2,611 | +$3,307 | +$4,556 |
| $480 (+15%) | +$2,793 | +$3,310 | +$3,926 | +$4,556 |
| $501 (+20%) | +$3,317 | +$3,768 | +$4,245 | +$4,556 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -42% 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.