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WMT Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Walmart Inc. (Consumer Defensive) · $113.90 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
WMT is trading at $113.90 with RSI at 44 (neutral territory). Options IV is at 27% — 42% below its 30-day average of 46%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
44
IV Today
26.7%
IV vs 30d Avg
-42%
MACD
bullish
ADX
26
MFI
42
The Setup
WMT Covered Call
LONG STOCK
100 shares @ $113.9
SHORT CALL
$125 Sep '26 · $1.9/sh
Net Cost
$11,200
Max Profit
+$1,300
Break-even
$112.00
Projected P&L at Target
+$1,300
(11.6%)
P&L at Expiry
P&L Scenarios
What happens at different WMT prices by expiry:
| WMT Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $91 (-20%) | -$2,092 | -$2,089 | -$2,088 | -$2,088 |
| $97 (-15%) | -$1,534 | -$1,522 | -$1,519 | -$1,519 |
| $103 (-10%) | -$994 | -$965 | -$950 | -$949 |
| $108 (-5%) | -$492 | -$433 | -$390 | -$380 |
| $112 (-2%) | -$216 | -$137 | -$65 | -$38 |
| $114 (0%) ← now | -$46 | +$47 | +$141 | +$190 |
| $116 (+2%) | +$113 | +$219 | +$335 | +$418 |
| $120 (+5%) | +$328 | +$449 | +$595 | +$760 |
| $125 (+10%) ← target | +$606 | +$741 | +$912 | +$1,300 |
| $131 (+15%) | +$832 | +$963 | +$1,121 | +$1,300 |
| $137 (+20%) | +$978 | +$1,092 | +$1,214 | +$1,300 |
Why This Strategy, Why Now
- RSI at 44
- IV -42% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 26 — moderate trend
- 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.
ADX at 26 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.