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GWRE Covered Call Analysis: Proceed With Caution Weak · 30/100
GWRE · $117.95 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
This strategy is NOT recommended for GWRE right now
Score 30/100. The technical signals do not support selling covered calls on GWRE at this time.
RSI at 25 — oversold, not ideal for selling calls. IV -23% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk).
Check back when conditions improve, or consider a different strategy.
Quick Take
GWRE is trading at $117.95 with RSI at 25 (oversold territory). Options IV is at 55% — 23% below its 30-day average of 71%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
25
IV Today
54.8%
IV vs 30d Avg
-23%
MACD
bearish
ADX
23
MFI
31
The Setup
GWRE Covered Call
LONG STOCK
100 shares @ $117.95
SHORT CALL
$125 Jun '26 · $9.82/sh
Net Cost
$10,813
Max Profit
+$1,687
Break-even
$108.13
Projected P&L at Target
+$1,687
(15.6%)
P&L at Expiry
P&L Scenarios
What happens at different GWRE prices by expiry:
| GWRE Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $94 (-20%) | -$1,594 | -$1,486 | -$1,400 | -$1,377 |
| $100 (-15%) | -$1,130 | -$985 | -$847 | -$787 |
| $106 (-10%) | -$708 | -$528 | -$331 | -$197 |
| $112 (-5%) | -$331 | -$120 | +$131 | +$392 |
| $116 (-2%) | -$127 | +$99 | +$377 | +$746 |
| $118 (0%) ← now | +$0 | +$234 | +$528 | +$982 |
| $120 (+2%) | +$120 | +$360 | +$666 | +$1,218 |
| $125 (+6%) ← target | +$338 | +$587 | +$906 | +$1,687 |
| $130 (+10%) | +$531 | +$783 | +$1,102 | +$1,687 |
| $136 (+15%) | +$737 | +$983 | +$1,288 | +$1,687 |
| $142 (+20%) | +$907 | +$1,143 | +$1,419 | +$1,687 |
Why This Strategy, Why Now
- RSI at 25 — oversold, not ideal for selling calls
- IV -23% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 23 — moderate trend
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if GWRE rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.