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Why NVDA Is an Excellent Covered Call Candidate Right Now Strong · 90/100
NVIDIA Corporation (Technology) · $239.24 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
NVDA is trading at $239.24 with RSI at 68 (neutral territory). Options IV is at 35% — 31% below its 30-day average of 51%. 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
35.1%
IV vs 30d Avg
-31%
MACD
bullish
ADX
20
MFI
83
The Setup
NVDA Covered Call
LONG STOCK
100 shares @ $239.24
SHORT CALL
$260 Dec '26 · $6.8/sh
Net Cost
$23,244
Max Profit
+$2,756
Break-even
$232.44
Projected P&L at Target
+$2,756
(11.9%)
P&L at Expiry
P&L Scenarios
What happens at different NVDA prices by expiry:
| NVDA Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $191 (-20%) | -$4,186 | -$4,129 | -$4,106 | -$4,105 |
| $203 (-15%) | -$3,089 | -$2,981 | -$2,917 | -$2,909 |
| $215 (-10%) | -$2,064 | -$1,889 | -$1,748 | -$1,712 |
| $227 (-5%) | -$1,137 | -$888 | -$639 | -$516 |
| $234 (-2%) | -$635 | -$345 | -$24 | +$202 |
| $239 (0%) ← now | -$326 | -$11 | +$355 | +$680 |
| $244 (+2%) | -$36 | +$300 | +$706 | +$1,158 |
| $251 (+5%) | +$361 | +$721 | +$1,173 | +$1,876 |
| $260 (+9%) ← target | +$785 | +$1,162 | +$1,643 | +$2,756 |
| $263 (+10%) | +$922 | +$1,300 | +$1,784 | +$2,756 |
| $275 (+15%) | +$1,365 | +$1,736 | +$2,192 | +$2,756 |
| $287 (+20%) | +$1,705 | +$2,047 | +$2,436 | +$2,756 |
Why This Strategy, Why Now
- RSI at 68 — extended, ideal for selling calls
- IV -31% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
- MFI at 83 — money flow confirms overbought
Key Risks
NVDA 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 NVDA approaches the strike before expiry.