← Best Covered Calls
/ CSCO
Why CSCO Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Cisco Systems Inc (Technology) · $82.22 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
CSCO is trading at $82.22 with RSI at 59 (neutral territory). Options IV is at 27% — 44% below its 30-day average of 48%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
59
IV Today
27.2%
IV vs 30d Avg
-44%
MACD
bullish
ADX
14
MFI
50
The Setup
CSCO Covered Call
LONG STOCK
100 shares @ $82.22
SHORT CALL
$89 Jun '26 · $2.08/sh
Net Cost
$8,014
Max Profit
+$886
Break-even
$80.14
Projected P&L at Target
+$886
(11.1%)
P&L at Expiry
P&L Scenarios
What happens at different CSCO prices by expiry:
| CSCO Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $66 (-20%) | -$1,440 | -$1,437 | -$1,436 | -$1,436 |
| $70 (-15%) | -$1,041 | -$1,029 | -$1,025 | -$1,025 |
| $74 (-10%) | -$658 | -$631 | -$616 | -$614 |
| $78 (-5%) | -$307 | -$257 | -$216 | -$203 |
| $81 (-2%) | -$116 | -$52 | +$11 | +$44 |
| $82 (0%) ← now | +$0 | +$73 | +$152 | +$208 |
| $84 (+2%) | +$108 | +$189 | +$283 | +$372 |
| $86 (+5%) | +$252 | +$342 | +$454 | +$619 |
| $89 (+8%) ← target | +$384 | +$480 | +$600 | +$886 |
| $90 (+10%) | +$445 | +$541 | +$662 | +$886 |
| $95 (+15%) | +$584 | +$674 | +$779 | +$886 |
| $99 (+20%) | +$677 | +$754 | +$833 | +$886 |
Why This Strategy, Why Now
- RSI at 59 — neutral-bullish
- IV -44% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 14 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
CSCO 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 CSCO approaches the strike before expiry.