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Why RIOT Is an Excellent Covered Call Candidate Right Now Strong · 85/100
RIOT · $16.60 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
RIOT is trading at $16.60 with RSI at 64 (neutral territory). Options IV is at 79% — 31% below its 30-day average of 116%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
64
IV Today
79.4%
IV vs 30d Avg
-31%
MACD
bullish
ADX
17
MFI
67
The Setup
RIOT Covered Call
LONG STOCK
100 shares @ $16.6
SHORT CALL
$18 Jun '26 · $1.97/sh
Net Cost
$1,463
Max Profit
+$337
Break-even
$14.63
Projected P&L at Target
+$337
(23.0%)
P&L at Expiry
P&L Scenarios
What happens at different RIOT prices by expiry:
| RIOT Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $13 (-20%) | -$197 | -$171 | -$146 | -$135 |
| $14 (-15%) | -$138 | -$106 | -$72 | -$52 |
| $15 (-10%) | -$83 | -$47 | -$5 | +$31 |
| $16 (-5%) | -$34 | +$7 | +$57 | +$114 |
| $16 (-2%) | -$6 | +$37 | +$90 | +$164 |
| $17 (0%) ← now | +$11 | +$55 | +$111 | +$197 |
| $17 (+2%) | +$28 | +$73 | +$130 | +$230 |
| $17 (+5%) | +$51 | +$98 | +$157 | +$280 |
| $18 (+8%) ← target | +$76 | +$124 | +$185 | +$337 |
| $18 (+10%) | +$87 | +$135 | +$196 | +$337 |
| $19 (+15%) | +$118 | +$167 | +$228 | +$337 |
| $20 (+20%) | +$146 | +$194 | +$254 | +$337 |
Why This Strategy, Why Now
- RSI at 64 — extended, ideal for selling calls
- IV -31% 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
RIOT 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 RIOT approaches the strike before expiry.