We’ve successfully sold covered calls for income on our T. Rowe Price shares a couple of times before, here and here. Today we have a good setup to try it again.

The delta we were able to target today, at .1877 is slightly higher than I’d prefer for avoiding being called away. I feel much more safe staying under .15, or even .10 if premiums seem sufficient. However, in the chart below you can see that T. Rowe’s RSI is rolling over from being oversold back to a more usual range, while the price has dropped slightly in the last few trading days.

Moreover, the recent high price has bounced below a price consolidation range that held for several months earlier in the past twelve months, and now appears to be serving as an area of resistance. So I feel fairly confident that today’s strike price, $110, is unlikely to be breached during our holding period. The $110 price point was last seen by these shares eight months ago, on September 8, 2025.

The shares are also supposed to go ex-dividend three days prior to the expiration date for the quarterly dividend of $1.30, which should also help suppress the price of the shares at the end. I felt the income we were able to generate from today’s premium, $83.33 after fees was worth what seems like a minimal risk of being called away. With our unadjusted basis of $89.11 each in these shares, being called away at a $110 strike price would be a nice capital gain in any case.