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LRCX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Lam Research Corp (Technology) · $310.53 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
LRCX is trading at $310.53 with RSI at 47 (neutral territory). Options IV is at 63% — 40% below its 30-day average of 106%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
47
IV Today
62.8%
IV vs 30d Avg
-41%
MACD
bullish
ADX
11
MFI
52
The Setup
LRCX Covered Call
LONG STOCK
100 shares @ $310.53
SHORT CALL
$335 Oct '26 · $22.58/sh
Net Cost
$28,795
Max Profit
+$4,705
Break-even
$287.95
Projected P&L at Target
+$4,705
(16.3%)
P&L at Expiry
P&L Scenarios
What happens at different LRCX prices by expiry:
| LRCX Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $248 (-20%) | -$4,403 | -$4,169 | -$3,988 | -$3,953 |
| $264 (-15%) | -$3,136 | -$2,810 | -$2,503 | -$2,400 |
| $279 (-10%) | -$1,973 | -$1,554 | -$1,095 | -$847 |
| $295 (-5%) | -$927 | -$424 | +$190 | +$705 |
| $304 (-2%) | -$356 | +$189 | +$886 | +$1,637 |
| $311 (0%) ← now | -$0 | +$569 | +$1,313 | +$2,258 |
| $317 (+2%) | +$336 | +$926 | +$1,710 | +$2,879 |
| $326 (+5%) | +$806 | +$1,418 | +$2,246 | +$3,811 |
| $335 (+8%) ← target | +$1,217 | +$1,843 | +$2,694 | +$4,705 |
| $342 (+10%) | +$1,496 | +$2,127 | +$2,982 | +$4,705 |
| $357 (+15%) | +$2,078 | +$2,704 | +$3,534 | +$4,705 |
| $373 (+20%) | +$2,563 | +$3,165 | +$3,927 | +$4,705 |
Why This Strategy, Why Now
- RSI at 47
- IV -40% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 11 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
LRCX 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 LRCX approaches the strike before expiry.