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CDNS Covered Call Analysis: Proceed With Caution Weak · 55/100
CDNS · $265.66 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
CDNS is trading at $265.66 with RSI at 45 (neutral territory). Options IV is at 42% — 45% below its 30-day average of 76%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
45
IV Today
41.7%
IV vs 30d Avg
-45%
MACD
bullish
ADX
15
MFI
36
The Setup
CDNS Covered Call
LONG STOCK
100 shares @ $265.66
SHORT CALL
$285 Jun '26 · $14.28/sh
Net Cost
$25,138
Max Profit
+$3,362
Break-even
$251.38
Projected P&L at Target
+$3,362
(13.4%)
P&L at Expiry
P&L Scenarios
What happens at different CDNS prices by expiry:
| CDNS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $213 (-20%) | -$4,023 | -$3,934 | -$3,889 | -$3,885 |
| $226 (-15%) | -$2,839 | -$2,685 | -$2,577 | -$2,557 |
| $239 (-10%) | -$1,745 | -$1,513 | -$1,305 | -$1,229 |
| $252 (-5%) | -$764 | -$454 | -$120 | +$100 |
| $260 (-2%) | -$237 | +$115 | +$522 | +$897 |
| $266 (0%) ← now | +$88 | +$463 | +$914 | +$1,428 |
| $271 (+2%) | +$391 | +$785 | +$1,274 | +$1,959 |
| $279 (+5%) | +$805 | +$1,221 | +$1,748 | +$2,756 |
| $285 (+7%) ← target | +$1,088 | +$1,513 | +$2,054 | +$3,362 |
| $292 (+10%) | +$1,391 | +$1,819 | +$2,360 | +$3,362 |
| $306 (+15%) | +$1,855 | +$2,269 | +$2,769 | +$3,362 |
| $319 (+20%) | +$2,213 | +$2,593 | +$3,017 | +$3,362 |
Why This Strategy, Why Now
- RSI at 45
- IV -45% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 15 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
CDNS 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 CDNS 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.