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Why NVDA Is an Excellent Covered Call Candidate Right Now Strong · 78/100
NVIDIA Corporation (Technology) · $210.96 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
NVDA is trading at $210.96 with RSI at 56 (neutral territory). Options IV is at 40% — 35% below its 30-day average of 62%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
56
IV Today
40.5%
IV vs 30d Avg
-35%
MACD
bullish
ADX
18
MFI
43
The Setup
NVDA Covered Call
LONG STOCK
100 shares @ $210.96
SHORT CALL
$230 Sep '26 · $8.63/sh
Net Cost
$20,233
Max Profit
+$2,767
Break-even
$202.33
Projected P&L at Target
+$2,767
(13.7%)
P&L at Expiry
P&L Scenarios
What happens at different NVDA prices by expiry:
| NVDA Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $169 (-20%) | -$3,430 | -$3,378 | -$3,357 | -$3,356 |
| $179 (-15%) | -$2,463 | -$2,366 | -$2,308 | -$2,301 |
| $190 (-10%) | -$1,561 | -$1,404 | -$1,279 | -$1,247 |
| $200 (-5%) | -$741 | -$521 | -$299 | -$192 |
| $207 (-2%) | -$297 | -$40 | +$244 | +$441 |
| $211 (0%) ← now | -$22 | +$257 | +$581 | +$863 |
| $215 (+2%) | +$236 | +$534 | +$893 | +$1,285 |
| $222 (+5%) | +$589 | +$909 | +$1,311 | +$1,918 |
| $230 (+9%) ← target | +$1,002 | +$1,338 | +$1,768 | +$2,767 |
| $243 (+15%) | +$1,491 | +$1,823 | +$2,235 | +$2,767 |
| $253 (+20%) | +$1,799 | +$2,109 | +$2,464 | +$2,767 |
Why This Strategy, Why Now
- RSI at 56 — neutral-bullish
- IV -35% 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.