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Why ON Is an Excellent Covered Call Candidate Right Now Strong · 85/100
ON · $68.65 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
ON is trading at $68.65 with RSI at 65 (neutral territory). Options IV is at 49% — 45% below its 30-day average of 90%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
65
IV Today
48.9%
IV vs 30d Avg
-45%
MACD
bullish
ADX
17
MFI
64
The Setup
ON Covered Call
LONG STOCK
100 shares @ $68.65
SHORT CALL
$74 Jun '26 · $4.3/sh
Net Cost
$6,435
Max Profit
+$965
Break-even
$64.35
Projected P&L at Target
+$965
(15.0%)
P&L at Expiry
P&L Scenarios
What happens at different ON prices by expiry:
| ON Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $55 (-20%) | -$1,011 | -$972 | -$947 | -$943 |
| $58 (-15%) | -$719 | -$661 | -$613 | -$600 |
| $62 (-10%) | -$451 | -$371 | -$293 | -$256 |
| $65 (-5%) | -$211 | -$111 | +$0 | +$87 |
| $67 (-2%) | -$80 | +$29 | +$159 | +$293 |
| $69 (0%) ← now | +$0 | +$116 | +$257 | +$430 |
| $70 (+2%) | +$76 | +$197 | +$347 | +$567 |
| $72 (+5%) | +$182 | +$308 | +$467 | +$773 |
| $74 (+8%) ← target | +$271 | +$400 | +$564 | +$965 |
| $76 (+10%) | +$335 | +$465 | +$630 | +$965 |
| $79 (+15%) | +$461 | +$589 | +$748 | +$965 |
| $82 (+20%) | +$564 | +$685 | +$827 | +$965 |
Why This Strategy, Why Now
- RSI at 65 — extended, ideal for selling calls
- IV -45% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 17 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
ON 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 ON approaches the strike before expiry.