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ADI Covered Call Analysis: Proceed With Caution Weak · 43/100
Analog Devices Inc (Technology) · $434.46 ·
Analysis generated Jun 18, 2026 ·
Data as of market close Jun 18
This strategy is NOT recommended for ADI right now
Score 43/100. The technical signals do not support selling covered calls on ADI at this time.
IV -48% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk). TTM Squeeze ON — breakout imminent, risky for capped strategies.
Check back when conditions improve, or consider a different strategy.
Quick Take
ADI is trading at $434.46 with RSI at 57 (neutral territory). Options IV is at 47% — 48% below its 30-day average of 90%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
57
IV Today
46.7%
IV vs 30d Avg
-48%
MACD
bearish
ADX
20
MFI
42
The Setup
ADI Covered Call
LONG STOCK
100 shares @ $434.46
SHORT CALL
$470 Aug '26 · $24.23/sh
Net Cost
$41,023
Max Profit
+$5,977
Break-even
$410.23
Projected P&L at Target
+$5,977
(14.6%)
P&L at Expiry
P&L Scenarios
What happens at different ADI prices by expiry:
| ADI Price | Today | Jul 9 | Jul 30 | Aug 21 (exp) |
|---|---|---|---|---|
| $348 (-20%) | -$6,559 | -$6,378 | -$6,277 | -$6,266 |
| $369 (-15%) | -$4,653 | -$4,359 | -$4,141 | -$4,094 |
| $391 (-10%) | -$2,893 | -$2,468 | -$2,077 | -$1,922 |
| $413 (-5%) | -$1,306 | -$754 | -$156 | +$251 |
| $426 (-2%) | -$448 | +$172 | +$892 | +$1,554 |
| $434 (0%) ← now | +$84 | +$744 | +$1,536 | +$2,423 |
| $443 (+2%) | +$584 | +$1,277 | +$2,131 | +$3,292 |
| $456 (+5%) | +$1,273 | +$2,003 | +$2,926 | +$4,595 |
| $470 (+8%) ← target | +$1,925 | +$2,678 | +$3,639 | +$5,977 |
| $478 (+10%) | +$2,264 | +$3,022 | +$3,987 | +$5,977 |
| $500 (+15%) | +$3,069 | +$3,814 | +$4,733 | +$5,977 |
| $521 (+20%) | +$3,710 | +$4,410 | +$5,220 | +$5,977 |
Why This Strategy, Why Now
- RSI at 57 — neutral-bullish
- IV -48% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 20 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.