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Why KLAC Is an Excellent Covered Call Candidate Right Now Strong · 75/100
KLA Corporation (Technology) · $258.09 ·
Analysis generated Jun 18, 2026 ·
Data as of market close Jun 18
Quick Take
KLAC is trading at $258.08 with RSI at 70 (neutral territory). Options IV is at 69% — 7% below its 30-day average of 74%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
70
IV Today
68.8%
IV vs 30d Avg
-7%
MACD
bullish
ADX
32
MFI
61
The Setup
KLAC Covered Call
LONG STOCK
100 shares @ $258.08
SHORT CALL
$280 Aug '26 · $25.0/sh
Net Cost
$23,309
Max Profit
+$4,692
Break-even
$233.08
Projected P&L at Target
+$4,692
(20.1%)
P&L at Expiry
P&L Scenarios
What happens at different KLAC prices by expiry:
| KLAC Price | Today | Jul 9 | Jul 30 | Aug 21 (exp) |
|---|---|---|---|---|
| $206 (-20%) | -$3,341 | -$3,026 | -$2,753 | -$2,662 |
| $219 (-15%) | -$2,364 | -$1,966 | -$1,569 | -$1,371 |
| $232 (-10%) | -$1,469 | -$992 | -$464 | -$81 |
| $245 (-5%) | -$657 | -$111 | +$539 | +$1,210 |
| $253 (-2%) | -$210 | +$370 | +$1,084 | +$1,984 |
| $258 (0%) ← now | +$71 | +$671 | +$1,421 | +$2,500 |
| $263 (+2%) | +$339 | +$955 | +$1,736 | +$3,016 |
| $271 (+5%) | +$716 | +$1,353 | +$2,170 | +$3,790 |
| $280 (+8%) ← target | +$1,121 | +$1,774 | +$2,615 | +$4,692 |
| $284 (+10%) | +$1,284 | +$1,941 | +$2,787 | +$4,692 |
| $297 (+15%) | +$1,778 | +$2,439 | +$3,278 | +$4,692 |
| $310 (+20%) | +$2,206 | +$2,856 | +$3,658 | +$4,692 |
Why This Strategy, Why Now
- RSI at 70 — extended, ideal for selling calls
- IV -7% vs avg — premiums near average, acceptable
- MACD bullish — stock has upward momentum
- ADX at 32 — strong trend, stock may run past strike
- 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.
ADX at 32 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.