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Why CSCO Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Cisco Systems Inc (Technology) · $115.99 ·
Analysis generated Jul 31, 2026 ·
Data as of market close Jul 31
Quick Take
CSCO is trading at $115.99 with RSI at 53 (neutral territory). Options IV is at 38% — 43% below its 30-day average of 67%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
53
IV Today
38.1%
IV vs 30d Avg
-43%
MACD
bullish
ADX
16
MFI
58
The Setup
CSCO Covered Call
LONG STOCK
100 shares @ $115.99
SHORT CALL
$125 Sep '26 · $4.55/sh
Net Cost
$11,144
Max Profit
+$1,356
Break-even
$111.44
Projected P&L at Target
+$1,356
(12.2%)
P&L at Expiry
P&L Scenarios
What happens at different CSCO prices by expiry:
| CSCO Price | Today | Aug 17 | Sep 2 | Sep 18 (exp) |
|---|---|---|---|---|
| $93 (-20%) | -$1,882 | -$1,869 | -$1,865 | -$1,865 |
| $99 (-15%) | -$1,332 | -$1,301 | -$1,286 | -$1,285 |
| $104 (-10%) | -$813 | -$755 | -$713 | -$705 |
| $110 (-5%) | -$342 | -$250 | -$162 | -$125 |
| $114 (-2%) | -$88 | +$24 | +$145 | +$223 |
| $116 (0%) ← now | +$67 | +$192 | +$335 | +$455 |
| $118 (+2%) | +$212 | +$346 | +$508 | +$687 |
| $122 (+5%) | +$407 | +$552 | +$736 | +$1,035 |
| $125 (+8%) ← target | +$563 | +$714 | +$906 | +$1,356 |
| $128 (+10%) | +$674 | +$825 | +$1,017 | +$1,356 |
| $133 (+15%) | +$875 | +$1,017 | +$1,186 | +$1,356 |
| $139 (+20%) | +$1,019 | +$1,142 | +$1,273 | +$1,356 |
Why This Strategy, Why Now
- RSI at 53 — neutral-bullish
- IV -43% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 16 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
CSCO 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 CSCO approaches the strike before expiry.