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IOT Covered Call Analysis: Proceed With Caution Weak · 35/100
IOT · $25.85 ·
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 IOT right now
Score 35/100. The technical signals do not support selling covered calls on IOT at this time.
RSI at 30 — oversold, not ideal for selling calls. IV -40% 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
IOT is trading at $25.85 with RSI at 30 (oversold territory). Options IV is at 64% — 40% below its 30-day average of 107%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
30
IV Today
64.3%
IV vs 30d Avg
-40%
MACD
bearish
ADX
18
MFI
27
The Setup
IOT Covered Call
LONG STOCK
100 shares @ $25.85
SHORT CALL
$28 Jun '26 · $2.07/sh
Net Cost
$2,378
Max Profit
+$422
Break-even
$23.78
Projected P&L at Target
+$422
(17.7%)
P&L at Expiry
P&L Scenarios
What happens at different IOT prices by expiry:
| IOT Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $21 (-20%) | -$362 | -$337 | -$316 | -$310 |
| $22 (-15%) | -$261 | -$227 | -$195 | -$181 |
| $23 (-10%) | -$168 | -$126 | -$80 | -$51 |
| $25 (-5%) | -$84 | -$35 | +$23 | +$78 |
| $25 (-2%) | -$38 | +$14 | +$79 | +$155 |
| $26 (0%) ← now | -$9 | +$46 | +$114 | +$207 |
| $26 (+2%) | +$18 | +$75 | +$146 | +$259 |
| $27 (+5%) | +$56 | +$115 | +$190 | +$336 |
| $28 (+8%) ← target | +$95 | +$155 | +$233 | +$422 |
| $28 (+10%) | +$114 | +$174 | +$252 | +$422 |
| $30 (+15%) | +$163 | +$224 | +$300 | +$422 |
| $31 (+20%) | +$205 | +$264 | +$336 | +$422 |
Why This Strategy, Why Now
- RSI at 30 — oversold, not ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if IOT rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.