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Why LRCX Is an Excellent Covered Call Candidate Right Now Strong · 83/100
Lam Research Corp (Technology) · $333.89 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
LRCX is trading at $333.89 with RSI at 58 (neutral territory). Options IV is at 56% — 28% below its 30-day average of 78%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
58
IV Today
56.4%
IV vs 30d Avg
-28%
MACD
bullish
ADX
18
MFI
71
The Setup
LRCX Covered Call
LONG STOCK
100 shares @ $333.89
SHORT CALL
$360 Dec '26 · $23.7/sh
Net Cost
$31,019
Max Profit
+$4,981
Break-even
$310.19
Projected P&L at Target
+$4,981
(16.1%)
P&L at Expiry
P&L Scenarios
What happens at different LRCX prices by expiry:
| LRCX Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $267 (-20%) | -$4,897 | -$4,593 | -$4,360 | -$4,308 |
| $284 (-15%) | -$3,567 | -$3,156 | -$2,778 | -$2,638 |
| $301 (-10%) | -$2,350 | -$1,834 | -$1,286 | -$969 |
| $317 (-5%) | -$1,253 | -$643 | +$71 | +$701 |
| $327 (-2%) | -$656 | +$2 | +$804 | +$1,702 |
| $334 (0%) ← now | -$282 | +$402 | +$1,255 | +$2,370 |
| $341 (+2%) | +$73 | +$779 | +$1,674 | +$3,038 |
| $351 (+5%) | +$567 | +$1,300 | +$2,241 | +$4,039 |
| $360 (+8%) ← target | +$994 | +$1,742 | +$2,708 | +$4,981 |
| $367 (+10%) | +$1,299 | +$2,053 | +$3,025 | +$4,981 |
| $384 (+15%) | +$1,921 | +$2,672 | +$3,619 | +$4,981 |
| $401 (+20%) | +$2,444 | +$3,172 | +$4,050 | +$4,981 |
Why This Strategy, Why Now
- RSI at 58 — neutral-bullish
- IV -28% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
- MFI at 71 — money flow confirms overbought
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.