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SNPS Covered Call Analysis: Proceed With Caution Weak · 35/100
SNPS · $392.24 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for SNPS right now
Score 35/100. The technical signals do not support selling covered calls on SNPS at this time.
RSI at 39 — oversold, not ideal for selling calls. IV -43% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk).
Check back when conditions improve, or consider a different strategy.
Quick Take
SNPS is trading at $392.24 with RSI at 39 (oversold territory). Options IV is at 45% — 43% below its 30-day average of 80%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
39
IV Today
45.4%
IV vs 30d Avg
-43%
MACD
bearish
ADX
20
MFI
23
The Setup
SNPS Covered Call
LONG STOCK
100 shares @ $392.24
SHORT CALL
$425 Jun '26 · $20.53/sh
Net Cost
$37,171
Max Profit
+$5,329
Break-even
$371.71
Projected P&L at Target
+$5,329
(14.3%)
P&L at Expiry
P&L Scenarios
What happens at different SNPS prices by expiry:
| SNPS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $314 (-20%) | -$6,039 | -$5,884 | -$5,801 | -$5,792 |
| $333 (-15%) | -$4,309 | -$4,054 | -$3,869 | -$3,831 |
| $353 (-10%) | -$2,708 | -$2,335 | -$1,997 | -$1,869 |
| $373 (-5%) | -$1,265 | -$776 | -$252 | +$92 |
| $384 (-2%) | -$484 | +$67 | +$703 | +$1,269 |
| $392 (0%) ← now | +$0 | +$587 | +$1,289 | +$2,053 |
| $400 (+2%) | +$455 | +$1,072 | +$1,832 | +$2,837 |
| $412 (+5%) | +$1,081 | +$1,734 | +$2,559 | +$4,014 |
| $425 (+8%) ← target | +$1,704 | +$2,379 | +$3,241 | +$5,329 |
| $431 (+10%) | +$1,981 | +$2,661 | +$3,526 | +$5,329 |
| $451 (+15%) | +$2,712 | +$3,381 | +$4,206 | +$5,329 |
| $471 (+20%) | +$3,291 | +$3,920 | +$4,648 | +$5,329 |
Why This Strategy, Why Now
- RSI at 39 — oversold, not ideal for selling calls
- IV -43% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 20 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if SNPS rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.