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PM Covered Call Analysis: Proceed With Caution Weak · 50/100
PM · $160.45 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
PM is trading at $160.45 with RSI at 42 (neutral territory). Options IV is at 0% — 100% below its 30-day average of 57%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
42
IV Today
0%
IV vs 30d Avg
-100%
MACD
bullish
ADX
36
MFI
59
The Setup
PM Covered Call
LONG STOCK
100 shares @ $160.45
SHORT CALL
$175 Jun '26 · $3.0/sh
Net Cost
$15,745
Max Profit
+$1,755
Break-even
$157.45
Projected P&L at Target
+$1,755
(11.1%)
P&L at Expiry
P&L Scenarios
What happens at different PM prices by expiry:
| PM Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $128 (-20%) | -$2,909 | -$2,909 | -$2,909 | -$2,909 |
| $136 (-15%) | -$2,107 | -$2,107 | -$2,107 | -$2,107 |
| $144 (-10%) | -$1,304 | -$1,304 | -$1,304 | -$1,304 |
| $152 (-5%) | -$509 | -$503 | -$502 | -$502 |
| $157 (-2%) | -$46 | -$29 | -$21 | -$21 |
| $160 (0%) ← now | +$248 | +$279 | +$298 | +$300 |
| $164 (+2%) | +$522 | +$572 | +$611 | +$621 |
| $168 (+5%) | +$882 | +$962 | +$1,045 | +$1,102 |
| $175 (+9%) ← target | +$1,244 | +$1,347 | +$1,474 | +$1,755 |
| $185 (+15%) | +$1,514 | +$1,600 | +$1,687 | +$1,755 |
| $193 (+20%) | +$1,588 | +$1,650 | +$1,705 | +$1,755 |
Why This Strategy, Why Now
- RSI at 42
- IV -100% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 36 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
PM 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 PM approaches the strike before expiry.
ADX at 36 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.