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ADI Covered Call Analysis: Proceed With Caution Weak · 58/100
Analog Devices Inc (Technology) · $350.14 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
ADI is trading at $350.14 with RSI at 54 (neutral territory). Options IV is at 39% — 46% below its 30-day average of 73%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
54
IV Today
39.3%
IV vs 30d Avg
-46%
MACD
bullish
ADX
26
MFI
55
The Setup
ADI Covered Call
LONG STOCK
100 shares @ $350.14
SHORT CALL
$380 Jun '26 · $10.8/sh
Net Cost
$33,934
Max Profit
+$4,066
Break-even
$339.34
Projected P&L at Target
+$4,066
(12.0%)
P&L at Expiry
P&L Scenarios
What happens at different ADI prices by expiry:
| ADI Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $280 (-20%) | -$5,986 | -$5,939 | -$5,923 | -$5,923 |
| $298 (-15%) | -$4,334 | -$4,230 | -$4,177 | -$4,172 |
| $315 (-10%) | -$2,780 | -$2,589 | -$2,450 | -$2,421 |
| $333 (-5%) | -$1,367 | -$1,073 | -$793 | -$671 |
| $343 (-2%) | -$602 | -$247 | +$132 | +$380 |
| $350 (0%) ← now | -$132 | +$260 | +$704 | +$1,080 |
| $357 (+2%) | +$306 | +$729 | +$1,233 | +$1,780 |
| $368 (+5%) | +$901 | +$1,361 | +$1,933 | +$2,831 |
| $380 (+9%) ← target | +$1,504 | +$1,987 | +$2,599 | +$4,066 |
| $385 (+10%) | +$1,726 | +$2,212 | +$2,826 | +$4,066 |
| $403 (+15%) | +$2,359 | +$2,828 | +$3,393 | +$4,066 |
| $420 (+20%) | +$2,823 | +$3,245 | +$3,707 | +$4,066 |
Why This Strategy, Why Now
- RSI at 54 — neutral-bullish
- IV -46% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 26 — moderate trend
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
ADI 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 ADI 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.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.