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Why GILD Is an Excellent Covered Call Candidate Right Now Strong · 83/100
Gilead Sciences Inc (Healthcare) · $129.83 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
GILD is trading at $129.83 with RSI at 51 (neutral territory). Options IV is at 25% — 50% below its 30-day average of 50%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
51
IV Today
25.3%
IV vs 30d Avg
-50%
MACD
bullish
ADX
19
MFI
74
The Setup
GILD Covered Call
LONG STOCK
100 shares @ $129.83
SHORT CALL
$140 Sep '26 · $3.32/sh
Net Cost
$12,651
Max Profit
+$1,349
Break-even
$126.51
Projected P&L at Target
+$1,349
(10.7%)
P&L at Expiry
P&L Scenarios
What happens at different GILD prices by expiry:
| GILD Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $104 (-20%) | -$2,271 | -$2,266 | -$2,265 | -$2,265 |
| $110 (-15%) | -$1,637 | -$1,620 | -$1,615 | -$1,615 |
| $117 (-10%) | -$1,030 | -$990 | -$968 | -$966 |
| $123 (-5%) | -$473 | -$398 | -$335 | -$317 |
| $127 (-2%) | -$173 | -$74 | +$25 | +$72 |
| $130 (0%) ← now | +$11 | +$125 | +$249 | +$332 |
| $132 (+2%) | +$180 | +$307 | +$455 | +$592 |
| $136 (+5%) | +$404 | +$546 | +$722 | +$981 |
| $140 (+8%) ← target | +$585 | +$733 | +$921 | +$1,349 |
| $143 (+10%) | +$702 | +$851 | +$1,038 | +$1,349 |
| $149 (+15%) | +$911 | +$1,049 | +$1,207 | +$1,349 |
| $156 (+20%) | +$1,048 | +$1,163 | +$1,278 | +$1,349 |
Why This Strategy, Why Now
- RSI at 51 — neutral-bullish
- IV -50% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
- MFI at 74 — money flow confirms overbought
Key Risks
GILD 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 GILD approaches the strike before expiry.