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Why WFC Is an Excellent Covered Call Candidate Right Now Strong · 85/100
WFC · $85.40 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
WFC is trading at $85.40 with RSI at 64 (neutral territory). Options IV is at 32% — 40% below its 30-day average of 54%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
64
IV Today
32.0%
IV vs 30d Avg
-40%
MACD
bullish
ADX
21
MFI
75
The Setup
WFC Covered Call
LONG STOCK
100 shares @ $85.4
SHORT CALL
$92 Jun '26 · $2.52/sh
Net Cost
$8,288
Max Profit
+$912
Break-even
$82.88
Projected P&L at Target
+$912
(11.0%)
P&L at Expiry
P&L Scenarios
What happens at different WFC prices by expiry:
| WFC Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $68 (-20%) | -$1,463 | -$1,457 | -$1,456 | -$1,456 |
| $73 (-15%) | -$1,053 | -$1,036 | -$1,029 | -$1,029 |
| $77 (-10%) | -$663 | -$628 | -$606 | -$602 |
| $81 (-5%) | -$307 | -$248 | -$195 | -$175 |
| $84 (-2%) | -$116 | -$42 | +$35 | +$81 |
| $85 (0%) ← now | +$0 | +$84 | +$177 | +$252 |
| $87 (+2%) | +$108 | +$199 | +$307 | +$423 |
| $90 (+5%) | +$253 | +$352 | +$476 | +$679 |
| $92 (+8%) ← target | +$366 | +$469 | +$600 | +$912 |
| $94 (+10%) | +$447 | +$551 | +$682 | +$912 |
| $98 (+15%) | +$588 | +$686 | +$799 | +$912 |
| $102 (+20%) | +$685 | +$769 | +$854 | +$912 |
Why This Strategy, Why Now
- RSI at 64 — extended, ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 21 — moderate trend
- No squeeze — no imminent breakout
- MFI at 75 — money flow confirms overbought
Key Risks
WFC 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 WFC approaches the strike before expiry.