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Why GILD Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Gilead Sciences Inc (Healthcare) · $143.44 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
GILD is trading at $143.44 with RSI at 67 (neutral territory). Options IV is at 25% — 60% below its 30-day average of 62%. 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)
67
IV Today
24.7%
IV vs 30d Avg
-60%
MACD
bullish
ADX
29
MFI
75
The Setup
GILD Covered Call
LONG STOCK
100 shares @ $143.44
SHORT CALL
$155 Oct '26 · $3.7/sh
Net Cost
$13,974
Max Profit
+$1,526
Break-even
$139.74
Projected P&L at Target
+$1,526
(10.9%)
P&L at Expiry
P&L Scenarios
What happens at different GILD prices by expiry:
| GILD Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $115 (-20%) | -$2,502 | -$2,499 | -$2,499 | -$2,499 |
| $122 (-15%) | -$1,795 | -$1,785 | -$1,782 | -$1,782 |
| $129 (-10%) | -$1,109 | -$1,080 | -$1,065 | -$1,064 |
| $136 (-5%) | -$472 | -$409 | -$358 | -$347 |
| $141 (-2%) | -$126 | -$38 | +$48 | +$83 |
| $143 (0%) ← now | +$86 | +$190 | +$304 | +$370 |
| $146 (+2%) | +$282 | +$399 | +$540 | +$657 |
| $151 (+5%) | +$540 | +$674 | +$848 | +$1,087 |
| $155 (+8%) ← target | +$761 | +$903 | +$1,092 | +$1,526 |
| $158 (+10%) | +$878 | +$1,021 | +$1,209 | +$1,526 |
| $165 (+15%) | +$1,109 | +$1,239 | +$1,393 | +$1,526 |
| $172 (+20%) | +$1,253 | +$1,358 | +$1,464 | +$1,526 |
Why This Strategy, Why Now
- RSI at 67 — extended, ideal for selling calls
- IV -60% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 29 — moderate trend
- No squeeze — no imminent breakout
- MFI at 75 — 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.
ADX at 29 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.