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Why WMT Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Walmart Inc. (Consumer Defensive) · $103.84 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
WMT is trading at $103.84 with RSI at 52 (neutral territory). Options IV is at 25% — 44% below its 30-day average of 45%. 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
25.4%
IV vs 30d Avg
-44%
MACD
bullish
ADX
17
MFI
57
The Setup
WMT Covered Call
LONG STOCK
100 shares @ $103.84
SHORT CALL
$110 Oct '26 · $1.63/sh
Net Cost
$10,221
Max Profit
+$779
Break-even
$102.21
Projected P&L at Target
+$779
(7.6%)
P&L at Expiry
P&L Scenarios
What happens at different WMT prices by expiry:
| WMT Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $83 (-20%) | -$1,916 | -$1,914 | -$1,914 | -$1,914 |
| $88 (-15%) | -$1,405 | -$1,397 | -$1,395 | -$1,395 |
| $93 (-10%) | -$913 | -$889 | -$876 | -$875 |
| $99 (-5%) | -$463 | -$413 | -$369 | -$356 |
| $102 (-2%) | -$223 | -$156 | -$84 | -$45 |
| $104 (0%) ← now | -$79 | -$1 | +$91 | +$163 |
| $106 (+2%) | +$51 | +$137 | +$247 | +$371 |
| $110 (+6%) ← target | +$263 | +$359 | +$487 | +$779 |
| $114 (+10%) | +$426 | +$520 | +$639 | +$779 |
| $119 (+15%) | +$558 | +$636 | +$722 | +$779 |
| $125 (+20%) | +$633 | +$692 | +$747 | +$779 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -44% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 17 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
WMT 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 WMT approaches the strike before expiry.