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NXPI Covered Call Analysis: Proceed With Caution Weak · 58/100
NXPI · $204.37 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
NXPI is trading at $204.37 with RSI at 52 (neutral territory). Options IV is at 42% — 32% below its 30-day average of 62%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
52
IV Today
42.4%
IV vs 30d Avg
-32%
MACD
bullish
ADX
25
MFI
59
The Setup
NXPI Covered Call
LONG STOCK
100 shares @ $204.37
SHORT CALL
$220 Jun '26 · $9.66/sh
Net Cost
$19,471
Max Profit
+$2,529
Break-even
$194.71
Projected P&L at Target
+$2,529
(13.0%)
P&L at Expiry
P&L Scenarios
What happens at different NXPI prices by expiry:
| NXPI Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $164 (-20%) | -$3,209 | -$3,150 | -$3,123 | -$3,121 |
| $174 (-15%) | -$2,287 | -$2,181 | -$2,112 | -$2,100 |
| $184 (-10%) | -$1,431 | -$1,267 | -$1,125 | -$1,078 |
| $194 (-5%) | -$661 | -$436 | -$200 | -$56 |
| $200 (-2%) | -$247 | +$11 | +$305 | +$557 |
| $204 (0%) ← now | +$8 | +$285 | +$614 | +$966 |
| $208 (+2%) | +$246 | +$539 | +$898 | +$1,375 |
| $215 (+5%) | +$571 | +$881 | +$1,273 | +$1,988 |
| $220 (+8%) ← target | +$827 | +$1,145 | +$1,551 | +$2,529 |
| $225 (+10%) | +$1,030 | +$1,351 | +$1,757 | +$2,529 |
| $235 (+15%) | +$1,392 | +$1,702 | +$2,078 | +$2,529 |
| $245 (+20%) | +$1,668 | +$1,953 | +$2,270 | +$2,529 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -32% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 25 — moderate trend
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
NXPI 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 NXPI approaches the strike before expiry.
ADX at 25 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.