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Why WMT Is an Excellent Covered Call Candidate Right Now Strong · 88/100
Walmart Inc. (Consumer Defensive) · $108.09 ·
Analysis generated Sep 16, 2026 ·
Data as of market close Sep 16
Quick Take
WMT is trading at $108.09 with RSI at 50 (neutral territory). Options IV is at 37% — 8% below its 30-day average of 41%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
50
IV Today
37.4%
IV vs 30d Avg
-9%
MACD
bullish
ADX
13
MFI
59
The Setup
WMT Covered Call
LONG STOCK
100 shares @ $108.09
SHORT CALL
$115 Nov '26 · $2.75/sh
Net Cost
$10,534
Max Profit
+$966
Break-even
$105.34
Projected P&L at Target
+$966
(9.2%)
P&L at Expiry
P&L Scenarios
What happens at different WMT prices by expiry:
| WMT Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $86 (-20%) | -$1,890 | -$1,887 | -$1,887 | -$1,887 |
| $92 (-15%) | -$1,359 | -$1,349 | -$1,346 | -$1,346 |
| $97 (-10%) | -$851 | -$823 | -$808 | -$806 |
| $103 (-5%) | -$385 | -$329 | -$280 | -$265 |
| $106 (-2%) | -$137 | -$62 | +$17 | +$59 |
| $108 (0%) ← now | +$12 | +$99 | +$199 | +$275 |
| $110 (+2%) | +$148 | +$244 | +$363 | +$491 |
| $113 (+5%) | +$325 | +$430 | +$568 | +$815 |
| $115 (+6%) ← target | +$396 | +$503 | +$645 | +$966 |
| $119 (+10%) | +$549 | +$655 | +$791 | +$966 |
| $124 (+15%) | +$695 | +$788 | +$891 | +$966 |
| $130 (+20%) | +$783 | +$855 | +$925 | +$966 |
Why This Strategy, Why Now
- RSI at 50 — neutral-bullish
- IV -8% vs avg — premiums near average, acceptable
- MACD bullish — stock has upward momentum
- ADX at 13 — 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.