← Best Covered Calls
/ MCHP
MCHP Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
MCHP · $71.56 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
MCHP is trading at $71.56 with RSI at 59 (neutral territory). Options IV is at 49% — 44% below its 30-day average of 88%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
59
IV Today
49.2%
IV vs 30d Avg
-44%
MACD
bullish
ADX
22
MFI
59
The Setup
MCHP Covered Call
LONG STOCK
100 shares @ $71.56
SHORT CALL
$77 Jun '26 · $4.16/sh
Net Cost
$6,740
Max Profit
+$960
Break-even
$67.40
Projected P&L at Target
+$960
(14.2%)
P&L at Expiry
P&L Scenarios
What happens at different MCHP prices by expiry:
| MCHP Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $57 (-20%) | -$1,072 | -$1,038 | -$1,018 | -$1,015 |
| $61 (-15%) | -$763 | -$709 | -$667 | -$657 |
| $64 (-10%) | -$479 | -$403 | -$331 | -$300 |
| $68 (-5%) | -$223 | -$127 | -$20 | +$58 |
| $70 (-2%) | -$85 | +$22 | +$148 | +$273 |
| $72 (0%) ← now | +$0 | +$114 | +$251 | +$416 |
| $73 (+2%) | +$81 | +$199 | +$346 | +$559 |
| $75 (+5%) | +$191 | +$315 | +$473 | +$774 |
| $77 (+8%) ← target | +$278 | +$405 | +$567 | +$960 |
| $79 (+10%) | +$350 | +$478 | +$641 | +$960 |
| $82 (+15%) | +$479 | +$605 | +$759 | +$960 |
| $86 (+20%) | +$583 | +$700 | +$836 | +$960 |
Why This Strategy, Why Now
- RSI at 59 — neutral-bullish
- IV -44% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 22 — moderate trend
- No squeeze — no imminent breakout
Key Risks
MCHP 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 MCHP approaches the strike before expiry.