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Why CWAN Is an Excellent Covered Call Candidate Right Now Strong · 85/100
CWAN · $24.00 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
CWAN is trading at $24.00 with RSI at 65 (neutral territory). Options IV is at 0% — 100% below its 30-day average of 109%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
65
IV Today
0%
IV vs 30d Avg
-100%
MACD
bullish
ADX
26
MFI
71
The Setup
CWAN Covered Call
LONG STOCK
100 shares @ $24.0
SHORT CALL
$26 Jun '26 · $0.01/sh
Net Cost
$2,399
Max Profit
+$201
Break-even
$23.99
Projected P&L at Target
+$201
(8.4%)
P&L at Expiry
P&L Scenarios
What happens at different CWAN prices by expiry:
| CWAN Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $19 (-20%) | -$479 | -$479 | -$479 | -$479 |
| $20 (-15%) | -$359 | -$359 | -$359 | -$359 |
| $22 (-10%) | -$239 | -$239 | -$239 | -$239 |
| $23 (-5%) | -$119 | -$119 | -$119 | -$119 |
| $24 (-2%) | -$47 | -$47 | -$47 | -$47 |
| $24 (0%) ← now | +$0 | +$1 | +$1 | +$1 |
| $24 (+2%) | +$46 | +$48 | +$49 | +$49 |
| $25 (+5%) | +$108 | +$114 | +$119 | +$121 |
| $26 (+8%) ← target | +$153 | +$164 | +$176 | +$201 |
| $26 (+10%) | +$166 | +$177 | +$188 | +$201 |
| $28 (+15%) | +$179 | +$186 | +$194 | +$201 |
| $29 (+20%) | +$180 | +$187 | +$194 | +$201 |
Why This Strategy, Why Now
- RSI at 65 — extended, ideal for selling calls
- IV -100% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 26 — moderate trend
- No squeeze — no imminent breakout
- MFI at 71 — money flow confirms overbought
Key Risks
CWAN 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 CWAN approaches the strike before expiry.
ADX at 26 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.