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WMT Covered Call Analysis: Proceed With Caution Weak · 58/100
Walmart Inc. (Consumer Defensive) · $107.20 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
WMT is trading at $107.20 with RSI at 51 (neutral territory). Options IV is at 25% — 38% 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)
51
IV Today
25.2%
IV vs 30d Avg
-38%
MACD
bearish
ADX
10
MFI
43
The Setup
WMT Covered Call
LONG STOCK
100 shares @ $107.2
SHORT CALL
$115 Dec '26 · $2.6/sh
Net Cost
$10,460
Max Profit
+$1,040
Break-even
$104.60
Projected P&L at Target
+$1,040
(9.9%)
P&L at Expiry
P&L Scenarios
What happens at different WMT prices by expiry:
| WMT Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $86 (-20%) | -$1,889 | -$1,885 | -$1,884 | -$1,884 |
| $91 (-15%) | -$1,368 | -$1,353 | -$1,348 | -$1,348 |
| $96 (-10%) | -$871 | -$835 | -$814 | -$812 |
| $102 (-5%) | -$416 | -$350 | -$294 | -$276 |
| $105 (-2%) | -$172 | -$87 | +$0 | +$46 |
| $107 (0%) ← now | -$24 | +$73 | +$181 | +$260 |
| $109 (+2%) | +$111 | +$219 | +$346 | +$474 |
| $113 (+5%) | +$291 | +$410 | +$559 | +$796 |
| $115 (+7%) ← target | +$409 | +$532 | +$687 | +$1,040 |
| $118 (+10%) | +$528 | +$651 | +$805 | +$1,040 |
| $123 (+15%) | +$692 | +$805 | +$932 | +$1,040 |
| $129 (+20%) | +$799 | +$892 | +$984 | +$1,040 |
Why This Strategy, Why Now
- RSI at 51 — neutral-bullish
- IV -38% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 10 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if WMT rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.