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Why HPE Is an Excellent Covered Call Candidate Right Now Strong · 78/100
HPE · $24.89 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
HPE is trading at $24.89 with RSI at 58 (neutral territory). Options IV is at 42% — 48% below its 30-day average of 81%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
58
IV Today
41.9%
IV vs 30d Avg
-48%
MACD
bullish
ADX
20
MFI
68
The Setup
HPE Covered Call
LONG STOCK
100 shares @ $24.89
SHORT CALL
$27 Jun '26 · $1.25/sh
Net Cost
$2,364
Max Profit
+$336
Break-even
$23.64
Projected P&L at Target
+$336
(14.2%)
P&L at Expiry
P&L Scenarios
What happens at different HPE prices by expiry:
| HPE Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $20 (-20%) | -$560 | -$495 | -$423 | -$373 |
| $21 (-15%) | -$483 | -$410 | -$325 | -$248 |
| $22 (-10%) | -$412 | -$332 | -$235 | -$124 |
| $24 (-5%) | -$346 | -$261 | -$153 | +$1 |
| $24 (-2%) | -$310 | -$222 | -$109 | +$75 |
| $25 (0%) ← now | -$287 | -$196 | -$80 | +$125 |
| $25 (+2%) | -$264 | -$172 | -$53 | +$175 |
| $26 (+5%) | -$232 | -$138 | -$16 | +$249 |
| $27 (+8%) ← target | -$196 | -$101 | +$24 | +$336 |
| $27 (+10%) | -$181 | -$85 | +$40 | +$336 |
| $29 (+15%) | -$136 | -$38 | +$89 | +$336 |
| $30 (+20%) | -$94 | +$5 | +$130 | +$336 |
Why This Strategy, Why Now
- RSI at 58 — neutral-bullish
- IV -48% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
HPE 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 HPE approaches the strike before expiry.