← Best Covered Calls
/ UNH
UNH Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
UNH · $304.33 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
UNH is trading at $304.33 with RSI at 66 (neutral territory). Options IV is at 33% — 43% below its 30-day average of 58%. 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)
66
IV Today
33.2%
IV vs 30d Avg
-43%
MACD
bullish
ADX
30
MFI
47
The Setup
UNH Covered Call
LONG STOCK
100 shares @ $304.33
SHORT CALL
$330 Jun '26 · $7.8/sh
Net Cost
$29,653
Max Profit
+$3,347
Break-even
$296.53
Projected P&L at Target
+$3,347
(11.3%)
P&L at Expiry
P&L Scenarios
What happens at different UNH prices by expiry:
| UNH Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $243 (-20%) | -$5,349 | -$5,317 | -$5,307 | -$5,307 |
| $259 (-15%) | -$3,900 | -$3,824 | -$3,788 | -$3,785 |
| $274 (-10%) | -$2,532 | -$2,384 | -$2,282 | -$2,263 |
| $289 (-5%) | -$1,286 | -$1,050 | -$831 | -$742 |
| $298 (-2%) | -$612 | -$322 | -$18 | +$171 |
| $304 (0%) ← now | -$197 | +$124 | +$486 | +$780 |
| $310 (+2%) | +$188 | +$538 | +$952 | +$1,389 |
| $320 (+5%) | +$708 | +$1,090 | +$1,566 | +$2,302 |
| $330 (+8%) ← target | +$1,220 | +$1,622 | +$2,131 | +$3,347 |
| $335 (+10%) | +$1,425 | +$1,829 | +$2,339 | +$3,347 |
| $350 (+15%) | +$1,965 | +$2,353 | +$2,817 | +$3,347 |
| $365 (+20%) | +$2,355 | +$2,699 | +$3,070 | +$3,347 |
Why This Strategy, Why Now
- RSI at 66 — extended, ideal for selling calls
- IV -43% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 30 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
Key Risks
UNH 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 UNH approaches the strike before expiry.
ADX at 30 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.