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BKR Covered Call Analysis: Proceed With Caution Weak · 55/100
Baker Hughes Co (Energy) · $55.23 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
BKR is trading at $55.23 with RSI at 45 (neutral territory). Options IV is at 34% — 28% below its 30-day average of 47%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
45
IV Today
33.7%
IV vs 30d Avg
-28%
MACD
bullish
ADX
18
MFI
50
The Setup
BKR Covered Call
LONG STOCK
100 shares @ $55.23
SHORT CALL
$60 Dec '26 · $1.2/sh
Net Cost
$5,403
Max Profit
+$597
Break-even
$54.03
Projected P&L at Target
+$597
(11.0%)
P&L at Expiry
P&L Scenarios
What happens at different BKR prices by expiry:
| BKR Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $44 (-20%) | -$987 | -$985 | -$985 | -$985 |
| $47 (-15%) | -$717 | -$710 | -$708 | -$708 |
| $50 (-10%) | -$458 | -$442 | -$433 | -$432 |
| $52 (-5%) | -$219 | -$188 | -$163 | -$156 |
| $54 (-2%) | -$88 | -$48 | -$8 | +$10 |
| $55 (0%) ← now | -$9 | +$38 | +$89 | +$120 |
| $56 (+2%) | +$65 | +$118 | +$178 | +$230 |
| $58 (+5%) | +$165 | +$224 | +$298 | +$396 |
| $60 (+9%) ← target | +$268 | +$330 | +$411 | +$597 |
| $61 (+10%) | +$300 | +$363 | +$444 | +$597 |
| $64 (+15%) | +$398 | +$457 | +$527 | +$597 |
| $66 (+20%) | +$464 | +$514 | +$566 | +$597 |
Why This Strategy, Why Now
- RSI at 45
- IV -28% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
BKR 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 BKR approaches the strike before expiry.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.