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CVX Covered Call Analysis: Proceed With Caution Weak · 30/100
CVX · $188.55 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for CVX right now
Score 30/100. The technical signals do not support selling covered calls on CVX at this time.
IV -36% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk). ADX at 32 — strong trend, stock may run past strike.
Check back when conditions improve, or consider a different strategy.
Quick Take
CVX is trading at $188.55 with RSI at 41 (neutral territory). Options IV is at 30% — 36% below its 30-day average of 47%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
41
IV Today
30.1%
IV vs 30d Avg
-36%
MACD
bearish
ADX
32
MFI
64
The Setup
CVX Covered Call
LONG STOCK
100 shares @ $188.55
SHORT CALL
$205 Jun '26 · $4.33/sh
Net Cost
$18,422
Max Profit
+$2,078
Break-even
$184.22
Projected P&L at Target
+$2,078
(11.3%)
P&L at Expiry
P&L Scenarios
What happens at different CVX prices by expiry:
| CVX Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $151 (-20%) | -$3,346 | -$3,339 | -$3,338 | -$3,338 |
| $160 (-15%) | -$2,424 | -$2,402 | -$2,395 | -$2,395 |
| $170 (-10%) | -$1,538 | -$1,484 | -$1,455 | -$1,452 |
| $179 (-5%) | -$720 | -$616 | -$533 | -$510 |
| $185 (-2%) | -$274 | -$137 | -$5 | +$56 |
| $189 (0%) ← now | -$0 | +$158 | +$326 | +$433 |
| $192 (+2%) | +$253 | +$431 | +$634 | +$810 |
| $198 (+5%) | +$593 | +$794 | +$1,040 | +$1,376 |
| $205 (+9%) ← target | +$945 | +$1,161 | +$1,434 | +$2,078 |
| $207 (+10%) | +$1,049 | +$1,266 | +$1,539 | +$2,078 |
| $217 (+15%) | +$1,377 | +$1,582 | +$1,824 | +$2,078 |
| $226 (+20%) | +$1,597 | +$1,772 | +$1,953 | +$2,078 |
Why This Strategy, Why Now
- RSI at 41
- IV -36% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 32 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
ADX at 32 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.