← Best Covered Calls
/ NVDA
Why NVDA Is an Excellent Covered Call Candidate Right Now Strong · 78/100
NVIDIA Corporation (Technology) · $216.85 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
NVDA is trading at $216.85 with RSI at 54 (neutral territory). Options IV is at 39% — 34% below its 30-day average of 58%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
54
IV Today
38.8%
IV vs 30d Avg
-34%
MACD
bullish
ADX
18
MFI
68
The Setup
NVDA Covered Call
LONG STOCK
100 shares @ $216.85
SHORT CALL
$235 Oct '26 · $6.7/sh
Net Cost
$21,015
Max Profit
+$2,485
Break-even
$210.15
Projected P&L at Target
+$2,485
(11.8%)
P&L at Expiry
P&L Scenarios
What happens at different NVDA prices by expiry:
| NVDA Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $173 (-20%) | -$3,704 | -$3,677 | -$3,667 | -$3,667 |
| $184 (-15%) | -$2,680 | -$2,619 | -$2,586 | -$2,583 |
| $195 (-10%) | -$1,715 | -$1,603 | -$1,516 | -$1,499 |
| $206 (-5%) | -$837 | -$663 | -$487 | -$414 |
| $213 (-2%) | -$363 | -$152 | +$86 | +$236 |
| $217 (0%) ← now | -$70 | +$162 | +$441 | +$670 |
| $221 (+2%) | +$202 | +$452 | +$769 | +$1,104 |
| $228 (+5%) | +$570 | +$842 | +$1,202 | +$1,754 |
| $235 (+8%) ← target | +$929 | +$1,213 | +$1,596 | +$2,485 |
| $239 (+10%) | +$1,082 | +$1,368 | +$1,752 | +$2,485 |
| $249 (+15%) | +$1,472 | +$1,747 | +$2,097 | +$2,485 |
| $260 (+20%) | +$1,758 | +$2,003 | +$2,284 | +$2,485 |
Why This Strategy, Why Now
- RSI at 54 — neutral-bullish
- IV -34% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
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.