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QCOM Covered Call Analysis: Proceed With Caution Weak · 20/100
Qualcomm Incorporated (Technology) · $128.06 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for QCOM right now
Score 20/100. The technical signals do not support selling covered calls on QCOM at this time.
RSI at 29 — oversold, not ideal for selling calls. IV -31% vs avg — premiums below average, less income. ADX at 35 — strong trend, stock may run past strike. TTM Squeeze ON — breakout imminent, risky for capped strategies.
Check back when conditions improve, or consider a different strategy.
Quick Take
QCOM is trading at $128.06 with RSI at 29 (oversold territory). Options IV is at 39% — 31% below its 30-day average of 56%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
29
IV Today
38.6%
IV vs 30d Avg
-31%
MACD
bullish
ADX
35
MFI
14
The Setup
QCOM Covered Call
LONG STOCK
100 shares @ $128.06
SHORT CALL
$140 Jun '26 · $3.8/sh
Net Cost
$12,426
Max Profit
+$1,574
Break-even
$124.26
Projected P&L at Target
+$1,574
(12.7%)
P&L at Expiry
P&L Scenarios
What happens at different QCOM prices by expiry:
| QCOM Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $102 (-20%) | -$2,197 | -$2,185 | -$2,181 | -$2,181 |
| $109 (-15%) | -$1,586 | -$1,556 | -$1,542 | -$1,541 |
| $115 (-10%) | -$1,006 | -$947 | -$908 | -$901 |
| $122 (-5%) | -$474 | -$378 | -$292 | -$260 |
| $126 (-2%) | -$185 | -$66 | +$55 | +$124 |
| $128 (0%) ← now | -$7 | +$126 | +$272 | +$380 |
| $131 (+2%) | +$160 | +$305 | +$474 | +$636 |
| $134 (+5%) | +$386 | +$547 | +$744 | +$1,020 |
| $140 (+9%) ← target | +$663 | +$835 | +$1,053 | +$1,574 |
| $147 (+15%) | +$942 | +$1,111 | +$1,316 | +$1,574 |
| $154 (+20%) | +$1,118 | +$1,270 | +$1,438 | +$1,574 |
Why This Strategy, Why Now
- RSI at 29 — oversold, not ideal for selling calls
- IV -31% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 35 — strong trend, stock may run past strike
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
QCOM 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 QCOM approaches the strike before expiry.
ADX at 35 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.