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Why MS Is an Excellent Covered Call Candidate Right Now Strong · 85/100
MS · $177.64 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
MS is trading at $177.64 with RSI at 66 (neutral territory). Options IV is at 33% — 44% below its 30-day average of 59%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
66
IV Today
33.1%
IV vs 30d Avg
-44%
MACD
bullish
ADX
18
MFI
68
The Setup
MS Covered Call
LONG STOCK
100 shares @ $177.64
SHORT CALL
$190 Jun '26 · $4.55/sh
Net Cost
$17,309
Max Profit
+$1,691
Break-even
$173.09
Projected P&L at Target
+$1,691
(9.8%)
P&L at Expiry
P&L Scenarios
What happens at different MS prices by expiry:
| MS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $142 (-20%) | -$3,120 | -$3,103 | -$3,098 | -$3,098 |
| $151 (-15%) | -$2,274 | -$2,231 | -$2,212 | -$2,210 |
| $160 (-10%) | -$1,477 | -$1,392 | -$1,333 | -$1,321 |
| $169 (-5%) | -$757 | -$621 | -$491 | -$433 |
| $174 (-2%) | -$373 | -$206 | -$25 | +$100 |
| $178 (0%) ← now | -$139 | +$46 | +$259 | +$455 |
| $181 (+2%) | +$77 | +$276 | +$517 | +$810 |
| $187 (+5%) | +$364 | +$579 | +$849 | +$1,343 |
| $190 (+7%) ← target | +$529 | +$749 | +$1,028 | +$1,691 |
| $195 (+10%) | +$751 | +$971 | +$1,246 | +$1,691 |
| $204 (+15%) | +$1,032 | +$1,236 | +$1,470 | +$1,691 |
| $213 (+20%) | +$1,225 | +$1,399 | +$1,576 | +$1,691 |
Why This Strategy, Why Now
- RSI at 66 — extended, ideal for selling calls
- IV -44% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
MS 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 MS approaches the strike before expiry.