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Why WMT Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Walmart Inc. Common Stock (Consumer Defensive) · $126.77 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
WMT is trading at $126.77 with RSI at 61 (neutral territory). Options IV is at 27% — 40% below its 30-day average of 45%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
61
IV Today
26.8%
IV vs 30d Avg
-40%
MACD
bullish
ADX
12
MFI
68
The Setup
WMT Covered Call
LONG STOCK
100 shares @ $126.77
SHORT CALL
$135 Jun '26 · $2.89/sh
Net Cost
$12,388
Max Profit
+$1,112
Break-even
$123.88
Projected P&L at Target
+$1,112
(9.0%)
P&L at Expiry
P&L Scenarios
What happens at different WMT prices by expiry:
| WMT Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $101 (-20%) | -$2,252 | -$2,247 | -$2,246 | -$2,246 |
| $108 (-15%) | -$1,637 | -$1,620 | -$1,613 | -$1,613 |
| $114 (-10%) | -$1,051 | -$1,009 | -$983 | -$979 |
| $120 (-5%) | -$518 | -$440 | -$371 | -$345 |
| $124 (-2%) | -$235 | -$135 | -$30 | +$35 |
| $127 (0%) ← now | -$63 | +$51 | +$179 | +$289 |
| $129 (+2%) | +$94 | +$218 | +$368 | +$543 |
| $133 (+5%) | +$299 | +$434 | +$604 | +$923 |
| $135 (+6%) ← target | +$388 | +$526 | +$700 | +$1,112 |
| $139 (+10%) | +$565 | +$702 | +$871 | +$1,112 |
| $146 (+15%) | +$746 | +$868 | +$1,003 | +$1,112 |
| $152 (+20%) | +$860 | +$960 | +$1,054 | +$1,112 |
Why This Strategy, Why Now
- RSI at 61 — extended, ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 12 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
WMT 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 WMT approaches the strike before expiry.