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Why FORM Is an Excellent Covered Call Candidate Right Now Strong · 90/100
FORM · $123.80 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
FORM is trading at $123.80 with RSI at 72 (overbought territory). Options IV is at 79% — 21% below its 30-day average of 100%. 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)
72
IV Today
79.3%
IV vs 30d Avg
-21%
MACD
bullish
ADX
19
MFI
80
The Setup
FORM Covered Call
LONG STOCK
100 shares @ $123.8
SHORT CALL
$135 Jun '26 · $11.91/sh
Net Cost
$11,189
Max Profit
+$2,311
Break-even
$111.89
Projected P&L at Target
+$2,311
(20.7%)
P&L at Expiry
P&L Scenarios
What happens at different FORM prices by expiry:
| FORM Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $99 (-20%) | -$1,630 | -$1,472 | -$1,332 | -$1,285 |
| $105 (-15%) | -$1,165 | -$966 | -$767 | -$666 |
| $111 (-10%) | -$738 | -$501 | -$238 | -$47 |
| $118 (-5%) | -$349 | -$79 | +$243 | +$572 |
| $121 (-2%) | -$136 | +$152 | +$504 | +$943 |
| $124 (0%) ← now | -$0 | +$296 | +$667 | +$1,191 |
| $126 (+2%) | +$129 | +$434 | +$820 | +$1,439 |
| $130 (+5%) | +$311 | +$626 | +$1,030 | +$1,810 |
| $135 (+9%) ← target | +$536 | +$860 | +$1,279 | +$2,311 |
| $142 (+15%) | +$826 | +$1,155 | +$1,574 | +$2,311 |
| $149 (+20%) | +$1,035 | +$1,360 | +$1,765 | +$2,311 |
Why This Strategy, Why Now
- RSI at 72 — extended, ideal for selling calls
- IV -21% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
- MFI at 80 — money flow confirms overbought
Key Risks
FORM 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 FORM approaches the strike before expiry.