← Best Covered Calls
/ WDC
Why WDC Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Western Digital Corporation (Technology) · $343.43 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
WDC is trading at $343.43 with RSI at 63 (neutral territory). Options IV is at 73% — 28% below its 30-day average of 102%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
63
IV Today
73.2%
IV vs 30d Avg
-29%
MACD
bullish
ADX
19
MFI
39
The Setup
WDC Covered Call
LONG STOCK
100 shares @ $343.43
SHORT CALL
$370 Jun '26 · $37.99/sh
Net Cost
$30,544
Max Profit
+$6,456
Break-even
$305.44
Projected P&L at Target
+$6,456
(21.1%)
P&L at Expiry
P&L Scenarios
What happens at different WDC prices by expiry:
| WDC Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $275 (-20%) | -$4,106 | -$3,645 | -$3,226 | -$3,070 |
| $292 (-15%) | -$2,839 | -$2,266 | -$1,677 | -$1,352 |
| $309 (-10%) | -$1,679 | -$1,003 | -$239 | +$365 |
| $326 (-5%) | -$629 | +$135 | +$1,059 | +$2,082 |
| $337 (-2%) | -$52 | +$756 | +$1,760 | +$3,112 |
| $343 (0%) ← now | +$312 | +$1,145 | +$2,194 | +$3,799 |
| $350 (+2%) | +$659 | +$1,513 | +$2,600 | +$4,486 |
| $361 (+5%) | +$1,148 | +$2,027 | +$3,157 | +$5,516 |
| $370 (+8%) ← target | +$1,562 | +$2,458 | +$3,611 | +$6,456 |
| $378 (+10%) | +$1,883 | +$2,787 | +$3,948 | +$6,456 |
| $395 (+15%) | +$2,526 | +$3,432 | +$4,581 | +$6,456 |
| $412 (+20%) | +$3,084 | +$3,975 | +$5,072 | +$6,456 |
Why This Strategy, Why Now
- RSI at 63 — extended, ideal for selling calls
- IV -28% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
WDC 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 WDC approaches the strike before expiry.