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Why RMBS Is an Excellent Covered Call Candidate Right Now Strong · 85/100
RMBS · $110.44 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
RMBS is trading at $110.44 with RSI at 67 (neutral territory). Options IV is at 68% — 20% below its 30-day average of 84%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
67
IV Today
67.9%
IV vs 30d Avg
-20%
MACD
bullish
ADX
17
MFI
64
The Setup
RMBS Covered Call
LONG STOCK
100 shares @ $110.44
SHORT CALL
$120 Jun '26 · $10.4/sh
Net Cost
$10,004
Max Profit
+$1,996
Break-even
$100.04
Projected P&L at Target
+$1,996
(20.0%)
P&L at Expiry
P&L Scenarios
What happens at different RMBS prices by expiry:
| RMBS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $88 (-20%) | -$1,461 | -$1,325 | -$1,208 | -$1,169 |
| $94 (-15%) | -$1,043 | -$872 | -$701 | -$617 |
| $99 (-10%) | -$659 | -$454 | -$227 | -$64 |
| $105 (-5%) | -$312 | -$77 | +$202 | +$488 |
| $108 (-2%) | -$121 | +$129 | +$436 | +$819 |
| $110 (0%) ← now | -$0 | +$258 | +$581 | +$1,040 |
| $113 (+2%) | +$115 | +$380 | +$716 | +$1,261 |
| $116 (+5%) | +$277 | +$551 | +$903 | +$1,592 |
| $120 (+9%) ← target | +$458 | +$740 | +$1,102 | +$1,996 |
| $121 (+10%) | +$520 | +$803 | +$1,168 | +$1,996 |
| $127 (+15%) | +$733 | +$1,018 | +$1,380 | +$1,996 |
| $133 (+20%) | +$916 | +$1,197 | +$1,544 | +$1,996 |
Why This Strategy, Why Now
- RSI at 67 — extended, ideal for selling calls
- IV -20% 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
RMBS 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 RMBS approaches the strike before expiry.