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SNPS Covered Call Analysis: Proceed With Caution Weak · 58/100
Synopsys Inc (Technology) · $467.61 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
SNPS is trading at $467.61 with RSI at 53 (neutral territory). Options IV is at 42% — 57% below its 30-day average of 100%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
53
IV Today
42.4%
IV vs 30d Avg
-57%
MACD
bearish
ADX
19
MFI
33
The Setup
SNPS Covered Call
LONG STOCK
100 shares @ $467.61
SHORT CALL
$510 Dec '26 · $19.2/sh
Net Cost
$44,841
Max Profit
+$6,159
Break-even
$448.41
Projected P&L at Target
+$6,159
(13.7%)
P&L at Expiry
P&L Scenarios
What happens at different SNPS prices by expiry:
| SNPS Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $374 (-20%) | -$7,531 | -$7,458 | -$7,433 | -$7,432 |
| $397 (-15%) | -$5,337 | -$5,182 | -$5,101 | -$5,094 |
| $421 (-10%) | -$3,271 | -$2,999 | -$2,797 | -$2,756 |
| $444 (-5%) | -$1,387 | -$977 | -$583 | -$418 |
| $458 (-2%) | -$364 | +$128 | +$657 | +$985 |
| $468 (0%) ← now | +$270 | +$810 | +$1,428 | +$1,920 |
| $477 (+2%) | +$862 | +$1,445 | +$2,144 | +$2,855 |
| $491 (+5%) | +$1,671 | +$2,305 | +$3,100 | +$4,258 |
| $510 (+9%) ← target | +$2,617 | +$3,286 | +$4,146 | +$6,159 |
| $538 (+15%) | +$3,701 | +$4,356 | +$5,163 | +$6,159 |
| $561 (+20%) | +$4,372 | +$4,967 | +$5,637 | +$6,159 |
Why This Strategy, Why Now
- RSI at 53 — neutral-bullish
- IV -57% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if SNPS rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.