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Why ALAB Is an Excellent Covered Call Candidate Right Now Strong · 85/100
ALAB · $149.05 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
ALAB is trading at $149.05 with RSI at 65 (neutral territory). Options IV is at 81% — 20% below its 30-day average of 101%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
65
IV Today
80.6%
IV vs 30d Avg
-20%
MACD
bullish
ADX
18
MFI
70
The Setup
ALAB Covered Call
LONG STOCK
100 shares @ $149.05
SHORT CALL
$160 Jun '26 · $17.75/sh
Net Cost
$13,130
Max Profit
+$2,870
Break-even
$131.30
Projected P&L at Target
+$2,870
(21.9%)
P&L at Expiry
P&L Scenarios
What happens at different ALAB prices by expiry:
| ALAB Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $119 (-20%) | -$1,793 | -$1,550 | -$1,314 | -$1,206 |
| $127 (-15%) | -$1,269 | -$978 | -$665 | -$461 |
| $134 (-10%) | -$788 | -$454 | -$65 | +$285 |
| $142 (-5%) | -$353 | +$18 | +$474 | +$1,030 |
| $146 (-2%) | -$112 | +$277 | +$765 | +$1,477 |
| $149 (0%) ← now | +$40 | +$439 | +$945 | +$1,775 |
| $152 (+2%) | +$185 | +$593 | +$1,115 | +$2,073 |
| $157 (+5%) | +$391 | +$809 | +$1,348 | +$2,520 |
| $160 (+7%) ← target | +$542 | +$966 | +$1,514 | +$2,870 |
| $164 (+10%) | +$703 | +$1,132 | +$1,684 | +$2,870 |
| $171 (+15%) | +$979 | +$1,409 | +$1,957 | +$2,870 |
| $179 (+20%) | +$1,221 | +$1,646 | +$2,175 | +$2,870 |
Why This Strategy, Why Now
- RSI at 65 — extended, ideal for selling calls
- IV -20% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
ALAB 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 ALAB approaches the strike before expiry.