T Covered Call Analysis: Proceed With Caution Weak · 35/100
T · $26.46 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for T right now
Score 35/100. The technical signals do not support selling covered calls on T at this time.
RSI at 37 — oversold, not ideal for selling calls. IV -56% 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
T is trading at $26.46 with RSI at 37 (oversold territory). Options IV is at 24% — 56% 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)
37
IV Today
24.4%
IV vs 30d Avg
-56%
MACD
bearish
ADX
18
MFI
53
The Setup
T Covered Call
LONG STOCK
100 shares @ $26.46
SHORT CALL
$29 Jun '26 · $0.35/sh
Net Cost
$2,611
Max Profit
+$289
Break-even
$26.11
Projected P&L at Target
+$289
(11.1%)
P&L at Expiry
P&L Scenarios
What happens at different T prices by expiry:
| T Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $21 (-20%) | -$494 | -$494 | -$494 | -$494 |
| $22 (-15%) | -$363 | -$362 | -$362 | -$362 |
| $24 (-10%) | -$235 | -$232 | -$230 | -$230 |
| $25 (-5%) | -$113 | -$104 | -$98 | -$97 |
| $26 (-2%) | -$47 | -$33 | -$21 | -$18 |
| $26 (0%) ← now | -$5 | +$12 | +$28 | +$35 |
| $27 (+2%) | +$33 | +$53 | +$75 | +$88 |
| $28 (+5%) | +$85 | +$109 | +$137 | +$167 |
| $29 (+10%) ← target | +$149 | +$176 | +$210 | +$289 |
| $30 (+15%) | +$201 | +$227 | +$257 | +$289 |
| $32 (+20%) | +$231 | +$252 | +$274 | +$289 |
Why This Strategy, Why Now
- RSI at 37 — oversold, not ideal for selling calls
- IV -56% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if T rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.