← Best Covered Calls
/ KLAC
Why KLAC Is an Excellent Covered Call Candidate Right Now Strong · 78/100
KLA Corporation (Technology) · $197.46 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
KLAC is trading at $197.46 with RSI at 57 (neutral territory). Options IV is at 51% — 36% below its 30-day average of 80%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
57
IV Today
51.1%
IV vs 30d Avg
-36%
MACD
bullish
ADX
17
MFI
69
The Setup
KLAC Covered Call
LONG STOCK
100 shares @ $197.46
SHORT CALL
$215 Dec '26 · $18.3/sh
Net Cost
$17,916
Max Profit
+$3,584
Break-even
$179.16
Projected P&L at Target
+$3,584
(20.0%)
P&L at Expiry
P&L Scenarios
What happens at different KLAC prices by expiry:
| KLAC Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $158 (-20%) | -$2,308 | -$2,196 | -$2,128 | -$2,119 |
| $168 (-15%) | -$1,465 | -$1,296 | -$1,164 | -$1,132 |
| $178 (-10%) | -$687 | -$457 | -$236 | -$145 |
| $188 (-5%) | +$16 | +$306 | +$625 | +$843 |
| $194 (-2%) | +$398 | +$719 | +$1,096 | +$1,435 |
| $197 (0%) ← now | +$636 | +$975 | +$1,386 | +$1,830 |
| $201 (+2%) | +$861 | +$1,216 | +$1,656 | +$2,225 |
| $207 (+5%) | +$1,173 | +$1,546 | +$2,021 | +$2,817 |
| $215 (+9%) ← target | +$1,533 | +$1,921 | +$2,419 | +$3,584 |
| $217 (+10%) | +$1,628 | +$2,018 | +$2,518 | +$3,584 |
| $227 (+15%) | +$2,007 | +$2,395 | +$2,883 | +$3,584 |
| $237 (+20%) | +$2,317 | +$2,689 | +$3,134 | +$3,584 |
Why This Strategy, Why Now
- RSI at 57 — neutral-bullish
- IV -36% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 17 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
KLAC 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 KLAC approaches the strike before expiry.