← Best Covered Calls
/ ARM
Why ARM Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Arm Holdings plc American Depositary Shares (Technology) · $302.56 ·
Analysis generated Oct 6, 2026 ·
Data as of market close Oct 6
Quick Take
ARM is trading at $302.56 with RSI at 57 (neutral territory). Options IV is at 66% — 20% below its 30-day average of 83%. 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
66.5%
IV vs 30d Avg
-20%
MACD
bullish
ADX
20
MFI
70
The Setup
ARM Covered Call
LONG STOCK
100 shares @ $302.56
SHORT CALL
$325 Dec '26 · $27.94/sh
Net Cost
$27,462
Max Profit
+$5,038
Break-even
$274.62
Projected P&L at Target
+$5,038
(18.3%)
P&L at Expiry
P&L Scenarios
What happens at different ARM prices by expiry:
| ARM Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $242 (-20%) | -$3,996 | -$3,644 | -$3,345 | -$3,257 |
| $257 (-15%) | -$2,845 | -$2,394 | -$1,948 | -$1,744 |
| $272 (-10%) | -$1,794 | -$1,249 | -$645 | -$232 |
| $287 (-5%) | -$845 | -$219 | +$532 | +$1,281 |
| $297 (-2%) | -$325 | +$341 | +$1,167 | +$2,189 |
| $303 (0%) ← now | +$0 | +$689 | +$1,557 | +$2,794 |
| $309 (+2%) | +$310 | +$1,017 | +$1,920 | +$3,399 |
| $318 (+5%) | +$744 | +$1,474 | +$2,415 | +$4,307 |
| $325 (+7%) ← target | +$1,069 | +$1,811 | +$2,770 | +$5,038 |
| $333 (+10%) | +$1,392 | +$2,141 | +$3,108 | +$5,038 |
| $348 (+15%) | +$1,951 | +$2,699 | +$3,645 | +$5,038 |
| $363 (+20%) | +$2,429 | +$3,158 | +$4,048 | +$5,038 |
Why This Strategy, Why Now
- RSI at 57 — neutral-bullish
- IV -20% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
ARM 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 ARM approaches the strike before expiry.