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Why WDC Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Western Digital Corporation (Technology) · $544.84 ·
Analysis generated Jul 31, 2026 ·
Data as of market close Jul 31
Quick Take
WDC is trading at $544.84 with RSI at 52 (neutral territory). Options IV is at 86% — 36% below its 30-day average of 134%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
52
IV Today
86.2%
IV vs 30d Avg
-36%
MACD
bullish
ADX
19
MFI
54
The Setup
WDC Covered Call
LONG STOCK
100 shares @ $544.84
SHORT CALL
$590 Sep '26 · $62.97/sh
Net Cost
$48,187
Max Profit
+$10,813
Break-even
$481.87
Projected P&L at Target
+$10,813
(22.4%)
P&L at Expiry
P&L Scenarios
What happens at different WDC prices by expiry:
| WDC Price | Today | Aug 17 | Sep 2 | Sep 18 (exp) |
|---|---|---|---|---|
| $436 (-20%) | -$6,445 | -$5,636 | -$4,882 | -$4,600 |
| $463 (-15%) | -$4,466 | -$3,478 | -$2,442 | -$1,876 |
| $490 (-10%) | -$2,649 | -$1,495 | -$174 | +$849 |
| $518 (-5%) | -$997 | +$297 | +$1,877 | +$3,573 |
| $534 (-2%) | -$85 | +$1,280 | +$2,990 | +$5,207 |
| $545 (0%) ← now | +$491 | +$1,896 | +$3,682 | +$6,297 |
| $556 (+2%) | +$1,042 | +$2,482 | +$4,331 | +$7,387 |
| $572 (+5%) | +$1,822 | +$3,304 | +$5,225 | +$9,021 |
| $590 (+8%) ← target | +$2,615 | +$4,129 | +$6,099 | +$10,813 |
| $599 (+10%) | +$3,003 | +$4,527 | +$6,509 | +$10,813 |
| $627 (+15%) | +$4,045 | +$5,579 | +$7,550 | +$10,813 |
| $654 (+20%) | +$4,957 | +$6,473 | +$8,372 | +$10,813 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -36% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
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.