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Why AMD Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Advanced Micro Devices Inc (Technology) · $245.04 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
AMD is trading at $245.04 with RSI at 70 (overbought territory). Options IV is at 56% — 22% below its 30-day average of 71%. 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)
70
IV Today
55.6%
IV vs 30d Avg
-22%
MACD
bullish
ADX
17
MFI
66
The Setup
AMD Covered Call
LONG STOCK
100 shares @ $245.04
SHORT CALL
$265 Jun '26 · $17.15/sh
Net Cost
$22,789
Max Profit
+$3,711
Break-even
$227.89
Projected P&L at Target
+$3,711
(16.3%)
P&L at Expiry
P&L Scenarios
What happens at different AMD prices by expiry:
| AMD Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $196 (-20%) | -$3,511 | -$3,335 | -$3,210 | -$3,186 |
| $208 (-15%) | -$2,501 | -$2,251 | -$2,033 | -$1,961 |
| $221 (-10%) | -$1,574 | -$1,247 | -$914 | -$735 |
| $233 (-5%) | -$738 | -$342 | +$110 | +$490 |
| $240 (-2%) | -$284 | +$148 | +$665 | +$1,225 |
| $245 (0%) ← now | +$0 | +$452 | +$1,007 | +$1,715 |
| $250 (+2%) | +$268 | +$737 | +$1,324 | +$2,205 |
| $257 (+5%) | +$642 | +$1,130 | +$1,753 | +$2,940 |
| $265 (+8%) ← target | +$997 | +$1,498 | +$2,141 | +$3,711 |
| $270 (+10%) | +$1,189 | +$1,695 | +$2,341 | +$3,711 |
| $282 (+15%) | +$1,651 | +$2,153 | +$2,781 | +$3,711 |
| $294 (+20%) | +$2,032 | +$2,515 | +$3,092 | +$3,711 |
Why This Strategy, Why Now
- RSI at 70 — extended, ideal for selling calls
- IV -22% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 17 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
AMD 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 AMD approaches the strike before expiry.