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Why TER Is an Excellent Covered Call Candidate Right Now Strong · 85/100
TER · $367.99 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
TER is trading at $367.99 with RSI at 67 (neutral territory). Options IV is at 68% — 35% below its 30-day average of 104%. 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
68.2%
IV vs 30d Avg
-35%
MACD
bullish
ADX
20
MFI
65
The Setup
TER Covered Call
LONG STOCK
100 shares @ $367.99
SHORT CALL
$395 Jun '26 · $34.19/sh
Net Cost
$33,380
Max Profit
+$6,120
Break-even
$333.80
Projected P&L at Target
+$6,120
(18.3%)
P&L at Expiry
P&L Scenarios
What happens at different TER prices by expiry:
| TER Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $294 (-20%) | -$4,852 | -$4,427 | -$4,060 | -$3,941 |
| $313 (-15%) | -$3,455 | -$2,912 | -$2,370 | -$2,101 |
| $331 (-10%) | -$2,178 | -$1,523 | -$796 | -$261 |
| $350 (-5%) | -$1,027 | -$276 | +$624 | +$1,579 |
| $361 (-2%) | -$396 | +$402 | +$1,389 | +$2,683 |
| $368 (0%) ← now | -$0 | +$824 | +$1,860 | +$3,419 |
| $375 (+2%) | +$376 | +$1,223 | +$2,299 | +$4,155 |
| $386 (+5%) | +$903 | +$1,777 | +$2,897 | +$5,259 |
| $395 (+7%) ← target | +$1,286 | +$2,173 | +$3,314 | +$6,120 |
| $405 (+10%) | +$1,691 | +$2,586 | +$3,735 | +$6,120 |
| $423 (+15%) | +$2,370 | +$3,264 | +$4,390 | +$6,120 |
| $442 (+20%) | +$2,952 | +$3,823 | +$4,883 | +$6,120 |
Why This Strategy, Why Now
- RSI at 67 — extended, ideal for selling calls
- IV -35% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
TER 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 TER approaches the strike before expiry.