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KLAC Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
KLA Corporation (Technology) · $185.86 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
KLAC is trading at $185.86 with RSI at 42 (neutral territory). Options IV is at 52% — 35% 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)
42
IV Today
52.3%
IV vs 30d Avg
-35%
MACD
bullish
ADX
14
MFI
60
The Setup
KLAC Covered Call
LONG STOCK
100 shares @ $185.86
SHORT CALL
$200 Oct '26 · $12.9/sh
Net Cost
$17,296
Max Profit
+$2,704
Break-even
$172.96
Projected P&L at Target
+$2,704
(15.6%)
P&L at Expiry
P&L Scenarios
What happens at different KLAC prices by expiry:
| KLAC Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $149 (-20%) | -$2,640 | -$2,524 | -$2,441 | -$2,427 |
| $158 (-15%) | -$1,863 | -$1,694 | -$1,542 | -$1,498 |
| $167 (-10%) | -$1,150 | -$926 | -$687 | -$569 |
| $177 (-5%) | -$509 | -$233 | +$98 | +$361 |
| $182 (-2%) | -$162 | +$140 | +$522 | +$918 |
| $186 (0%) ← now | +$55 | +$371 | +$782 | +$1,290 |
| $190 (+2%) | +$259 | +$587 | +$1,022 | +$1,662 |
| $195 (+5%) | +$541 | +$883 | +$1,345 | +$2,219 |
| $200 (+8%) ← target | +$766 | +$1,114 | +$1,588 | +$2,704 |
| $204 (+10%) | +$954 | +$1,306 | +$1,781 | +$2,704 |
| $214 (+15%) | +$1,296 | +$1,643 | +$2,098 | +$2,704 |
| $223 (+20%) | +$1,577 | +$1,907 | +$2,317 | +$2,704 |
Why This Strategy, Why Now
- RSI at 42
- IV -35% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 14 — 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.