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GE Covered Call Analysis: Proceed With Caution Weak · 58/100
GE · $308.35 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
GE is trading at $308.35 with RSI at 55 (neutral territory). Options IV is at 35% — 48% below its 30-day average of 67%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
55
IV Today
34.9%
IV vs 30d Avg
-48%
MACD
bullish
ADX
30
MFI
51
The Setup
GE Covered Call
LONG STOCK
100 shares @ $308.35
SHORT CALL
$335 Jun '26 · $10.2/sh
Net Cost
$29,815
Max Profit
+$3,685
Break-even
$298.15
Projected P&L at Target
+$3,685
(12.4%)
P&L at Expiry
P&L Scenarios
What happens at different GE prices by expiry:
| GE Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $247 (-20%) | -$5,195 | -$5,159 | -$5,147 | -$5,147 |
| $262 (-15%) | -$3,734 | -$3,649 | -$3,608 | -$3,605 |
| $278 (-10%) | -$2,354 | -$2,197 | -$2,085 | -$2,063 |
| $293 (-5%) | -$1,099 | -$850 | -$619 | -$522 |
| $302 (-2%) | -$419 | -$117 | +$203 | +$403 |
| $308 (0%) ← now | +$0 | +$335 | +$712 | +$1,020 |
| $315 (+2%) | +$390 | +$754 | +$1,184 | +$1,637 |
| $324 (+5%) | +$918 | +$1,315 | +$1,808 | +$2,562 |
| $335 (+9%) ← target | +$1,470 | +$1,888 | +$2,418 | +$3,685 |
| $339 (+10%) | +$1,651 | +$2,071 | +$2,603 | +$3,685 |
| $355 (+15%) | +$2,209 | +$2,615 | +$3,104 | +$3,685 |
| $370 (+20%) | +$2,616 | +$2,980 | +$3,378 | +$3,685 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -48% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 30 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
GE 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 GE approaches the strike before expiry.
ADX at 30 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.