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AUR Covered Call Analysis: Proceed With Caution Weak · 55/100
AUR · $4.15 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
AUR is trading at $4.15 with RSI at 46 (neutral territory). Options IV is at 80% — 32% below its 30-day average of 118%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
46
IV Today
79.7%
IV vs 30d Avg
-32%
MACD
bullish
ADX
18
MFI
47
The Setup
AUR Covered Call
LONG STOCK
100 shares @ $4.15
SHORT CALL
$5 Jun '26 · $0.35/sh
Net Cost
$380
Max Profit
+$70
Break-even
$3.80
Projected P&L at Target
+$70
(18.4%)
P&L at Expiry
P&L Scenarios
What happens at different AUR prices by expiry:
| AUR Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $3 (-20%) | -$59 | -$54 | -$49 | -$48 |
| $4 (-15%) | -$43 | -$37 | -$30 | -$27 |
| $4 (-10%) | -$29 | -$21 | -$12 | -$6 |
| $4 (-5%) | -$16 | -$7 | +$3 | +$14 |
| $4 (-2%) | -$8 | +$1 | +$12 | +$27 |
| $4 (0%) ← now | -$4 | +$6 | +$18 | +$35 |
| $4 (+2%) | +$0 | +$10 | +$23 | +$43 |
| $4 (+5%) | +$6 | +$17 | +$30 | +$56 |
| $5 (+8%) ← target | +$13 | +$23 | +$37 | +$70 |
| $5 (+10%) | +$16 | +$26 | +$40 | +$70 |
| $5 (+15%) | +$23 | +$34 | +$47 | +$70 |
| $5 (+20%) | +$30 | +$41 | +$53 | +$70 |
Why This Strategy, Why Now
- RSI at 46
- IV -32% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
AUR 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 AUR approaches the strike before expiry.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.