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Why NVDA Is an Excellent Covered Call Candidate Right Now Strong · 78/100
NVIDIA Corporation (Technology) · $188.63 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
NVDA is trading at $188.63 with RSI at 55 (neutral territory). Options IV is at 42% — 28% below its 30-day average of 59%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
55
IV Today
42.0%
IV vs 30d Avg
-28%
MACD
bullish
ADX
19
MFI
45
The Setup
NVDA Covered Call
LONG STOCK
100 shares @ $188.63
SHORT CALL
$205 Jun '26 · $6.45/sh
Net Cost
$18,218
Max Profit
+$2,282
Break-even
$182.18
Projected P&L at Target
+$2,282
(12.5%)
P&L at Expiry
P&L Scenarios
What happens at different NVDA prices by expiry:
| NVDA Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $151 (-20%) | -$3,205 | -$3,153 | -$3,130 | -$3,128 |
| $160 (-15%) | -$2,347 | -$2,253 | -$2,193 | -$2,184 |
| $170 (-10%) | -$1,550 | -$1,403 | -$1,279 | -$1,241 |
| $179 (-5%) | -$829 | -$625 | -$415 | -$298 |
| $185 (-2%) | -$438 | -$202 | +$61 | +$268 |
| $189 (0%) ← now | -$196 | +$58 | +$355 | +$645 |
| $192 (+2%) | +$30 | +$300 | +$627 | +$1,022 |
| $198 (+5%) | +$341 | +$629 | +$991 | +$1,588 |
| $205 (+9%) ← target | +$675 | +$976 | +$1,358 | +$2,282 |
| $207 (+10%) | +$783 | +$1,085 | +$1,469 | +$2,282 |
| $217 (+15%) | +$1,136 | +$1,432 | +$1,797 | +$2,282 |
| $226 (+20%) | +$1,410 | +$1,685 | +$2,000 | +$2,282 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -28% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
NVDA 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 NVDA approaches the strike before expiry.