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WDC Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Western Digital Corporation (Technology) · $746.23 ·
Analysis generated Jun 18, 2026 ·
Data as of market close Jun 18
Quick Take
WDC is trading at $746.23 with RSI at 78 (overbought territory). Options IV is at 90% — 23% below its 30-day average of 116%. 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)
78
IV Today
89.5%
IV vs 30d Avg
-23%
MACD
bullish
ADX
35
MFI
79
The Setup
WDC Covered Call
LONG STOCK
100 shares @ $746.23
SHORT CALL
$810 Aug '26 · $105.23/sh
Net Cost
$64,100
Max Profit
+$16,900
Break-even
$641.00
Projected P&L at Target
+$16,900
(26.4%)
P&L at Expiry
P&L Scenarios
What happens at different WDC prices by expiry:
| WDC Price | Today | Jul 9 | Jul 30 | Aug 21 (exp) |
|---|---|---|---|---|
| $597 (-20%) | -$7,695 | -$6,364 | -$5,042 | -$4,402 |
| $634 (-15%) | -$5,109 | -$3,536 | -$1,821 | -$670 |
| $672 (-10%) | -$2,733 | -$940 | +$1,155 | +$3,061 |
| $709 (-5%) | -$564 | +$1,416 | +$3,846 | +$6,792 |
| $731 (-2%) | +$640 | +$2,713 | +$5,313 | +$9,031 |
| $746 (0%) ← now | +$1,403 | +$3,530 | +$6,226 | +$10,523 |
| $761 (+2%) | +$2,135 | +$4,309 | +$7,089 | +$12,015 |
| $784 (+5%) | +$3,176 | +$5,409 | +$8,286 | +$14,254 |
| $810 (+9%) ← target | +$4,321 | +$6,604 | +$9,556 | +$16,900 |
| $821 (+10%) | +$4,765 | +$7,062 | +$10,032 | +$16,900 |
| $858 (+15%) | +$6,184 | +$8,506 | +$11,482 | +$16,900 |
| $895 (+20%) | +$7,444 | +$9,757 | +$12,665 | +$16,900 |
Why This Strategy, Why Now
- RSI at 78 — extended, ideal for selling calls
- IV -23% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 35 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 79 — money flow confirms overbought
Key Risks
WDC 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 WDC approaches the strike before expiry.
ADX at 35 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.