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ARM Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
ARM · $148.93 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
ARM is trading at $148.93 with RSI at 60 (neutral territory). Options IV is at 58% — 26% below its 30-day average of 78%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
60
IV Today
57.5%
IV vs 30d Avg
-26%
MACD
bullish
ADX
21
MFI
65
The Setup
ARM Covered Call
LONG STOCK
100 shares @ $148.93
SHORT CALL
$160 Jun '26 · $12.62/sh
Net Cost
$13,631
Max Profit
+$2,369
Break-even
$136.31
Projected P&L at Target
+$2,369
(17.4%)
P&L at Expiry
P&L Scenarios
What happens at different ARM prices by expiry:
| ARM Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $119 (-20%) | -$1,940 | -$1,823 | -$1,736 | -$1,717 |
| $127 (-15%) | -$1,336 | -$1,173 | -$1,026 | -$972 |
| $134 (-10%) | -$783 | -$574 | -$355 | -$227 |
| $141 (-5%) | -$287 | -$36 | +$254 | +$517 |
| $146 (-2%) | -$16 | +$255 | +$583 | +$964 |
| $149 (0%) ← now | +$152 | +$435 | +$785 | +$1,262 |
| $152 (+2%) | +$311 | +$603 | +$971 | +$1,560 |
| $156 (+5%) | +$532 | +$836 | +$1,223 | +$2,007 |
| $160 (+7%) ← target | +$697 | +$1,006 | +$1,401 | +$2,369 |
| $164 (+10%) | +$857 | +$1,168 | +$1,566 | +$2,369 |
| $171 (+15%) | +$1,130 | +$1,438 | +$1,822 | +$2,369 |
| $179 (+20%) | +$1,357 | +$1,653 | +$2,004 | +$2,369 |
Why This Strategy, Why Now
- RSI at 60 — neutral-bullish
- IV -26% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 21 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ARM 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 ARM approaches the strike before expiry.