← Best Covered Calls
/ LIN
LIN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Linde plc Ordinary Shares (Basic Materials) · $514.24 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
LIN is trading at $514.24 with RSI at 68 (neutral territory). Options IV is at 24% — 40% below its 30-day average of 40%. 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)
68
IV Today
23.8%
IV vs 30d Avg
-40%
MACD
bullish
ADX
32
MFI
57
The Setup
LIN Covered Call
LONG STOCK
100 shares @ $514.24
SHORT CALL
$560 Dec '26 · $3.3/sh
Net Cost
$51,094
Max Profit
+$4,906
Break-even
$510.94
Projected P&L at Target
+$4,906
(9.6%)
P&L at Expiry
P&L Scenarios
What happens at different LIN prices by expiry:
| LIN Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $411 (-20%) | -$9,955 | -$9,955 | -$9,955 | -$9,955 |
| $437 (-15%) | -$7,386 | -$7,384 | -$7,384 | -$7,384 |
| $463 (-10%) | -$4,830 | -$4,815 | -$4,812 | -$4,812 |
| $489 (-5%) | -$2,344 | -$2,273 | -$2,243 | -$2,241 |
| $504 (-2%) | -$938 | -$800 | -$711 | -$698 |
| $514 (0%) ← now | -$63 | +$132 | +$289 | +$330 |
| $525 (+2%) | +$747 | +$1,003 | +$1,249 | +$1,358 |
| $540 (+5%) | +$1,816 | +$2,153 | +$2,544 | +$2,901 |
| $560 (+9%) ← target | +$2,903 | +$3,295 | +$3,789 | +$4,906 |
| $566 (+10%) | +$3,147 | +$3,540 | +$4,034 | +$4,906 |
| $591 (+15%) | +$3,939 | +$4,276 | +$4,639 | +$4,906 |
| $617 (+20%) | +$4,332 | +$4,571 | +$4,777 | +$4,906 |
Why This Strategy, Why Now
- RSI at 68 — extended, ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 32 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
LIN 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 LIN approaches the strike before expiry.
ADX at 32 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.