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Why GILD Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Gilead Sciences Inc (Healthcare) · $170.68 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
GILD is trading at $170.68 with RSI at 75 (overbought territory). Options IV is at 27% — 52% below its 30-day average of 55%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
75
IV Today
26.7%
IV vs 30d Avg
-52%
MACD
bullish
ADX
28
MFI
66
The Setup
GILD Covered Call
LONG STOCK
100 shares @ $170.68
SHORT CALL
$185 Dec '26 · $3.32/sh
Net Cost
$16,736
Max Profit
+$1,764
Break-even
$167.36
Projected P&L at Target
+$1,764
(10.5%)
P&L at Expiry
P&L Scenarios
What happens at different GILD prices by expiry:
| GILD Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $137 (-20%) | -$3,084 | -$3,082 | -$3,082 | -$3,082 |
| $145 (-15%) | -$2,239 | -$2,230 | -$2,228 | -$2,228 |
| $154 (-10%) | -$1,419 | -$1,389 | -$1,376 | -$1,375 |
| $162 (-5%) | -$649 | -$580 | -$530 | -$521 |
| $167 (-2%) | -$228 | -$130 | -$41 | -$9 |
| $171 (0%) ← now | +$30 | +$148 | +$269 | +$332 |
| $174 (+2%) | +$269 | +$405 | +$558 | +$673 |
| $179 (+5%) | +$585 | +$743 | +$937 | +$1,185 |
| $185 (+8%) ← target | +$882 | +$1,052 | +$1,267 | +$1,764 |
| $188 (+10%) | +$1,001 | +$1,171 | +$1,386 | +$1,764 |
| $196 (+15%) | +$1,283 | +$1,437 | +$1,613 | +$1,764 |
| $205 (+20%) | +$1,459 | +$1,581 | +$1,698 | +$1,764 |
Why This Strategy, Why Now
- RSI at 75 — extended, ideal for selling calls
- IV -52% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 28 — moderate trend
- No squeeze — no imminent breakout
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.
ADX at 28 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.