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VIAV Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
VIAV · $41.79 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
Quick Take
VIAV is trading at $41.79 with RSI at 68 (neutral territory). Options IV is at 73% — 24% below its 30-day average of 96%. 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)
68
IV Today
72.9%
IV vs 30d Avg
-24%
MACD
bullish
ADX
37
MFI
82
The Setup
VIAV Covered Call
LONG STOCK
100 shares @ $41.79
SHORT CALL
$45 Jun '26 · $5.72/sh
Net Cost
$3,607
Max Profit
+$893
Break-even
$36.07
Projected P&L at Target
+$893
(24.8%)
P&L at Expiry
P&L Scenarios
What happens at different VIAV prices by expiry:
| VIAV Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $33 (-20%) | -$420 | -$355 | -$292 | -$264 |
| $36 (-15%) | -$272 | -$193 | -$108 | -$55 |
| $38 (-10%) | -$136 | -$44 | +$62 | +$154 |
| $40 (-5%) | -$12 | +$90 | +$215 | +$363 |
| $41 (-2%) | +$56 | +$163 | +$297 | +$488 |
| $42 (0%) ← now | +$99 | +$210 | +$349 | +$572 |
| $43 (+2%) | +$141 | +$253 | +$397 | +$656 |
| $44 (+5%) | +$199 | +$315 | +$464 | +$781 |
| $45 (+8%) ← target | +$248 | +$365 | +$517 | +$893 |
| $46 (+10%) | +$287 | +$406 | +$559 | +$893 |
| $48 (+15%) | +$365 | +$485 | +$637 | +$893 |
| $50 (+20%) | +$434 | +$552 | +$698 | +$893 |
Why This Strategy, Why Now
- RSI at 68 — extended, ideal for selling calls
- IV -24% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 37 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 82 — money flow confirms overbought
Key Risks
VIAV 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 VIAV approaches the strike before expiry.
ADX at 37 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.