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LRCX Covered Call Analysis: Proceed With Caution Weak · 50/100
Lam Research Corp (Technology) · $263.66 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
LRCX is trading at $263.66 with RSI at 50 (neutral territory). Options IV is at 58% — 34% below its 30-day average of 89%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
50
IV Today
58.5%
IV vs 30d Avg
-34%
MACD
bearish
ADX
19
MFI
67
The Setup
LRCX Covered Call
LONG STOCK
100 shares @ $263.66
SHORT CALL
$285 Jun '26 · $20.38/sh
Net Cost
$24,328
Max Profit
+$4,172
Break-even
$243.28
Projected P&L at Target
+$4,172
(17.2%)
P&L at Expiry
P&L Scenarios
What happens at different LRCX prices by expiry:
| LRCX Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $211 (-20%) | -$3,678 | -$3,450 | -$3,276 | -$3,235 |
| $224 (-15%) | -$2,620 | -$2,310 | -$2,026 | -$1,917 |
| $237 (-10%) | -$1,651 | -$1,259 | -$846 | -$599 |
| $250 (-5%) | -$776 | -$311 | +$230 | +$720 |
| $258 (-2%) | -$299 | +$204 | +$812 | +$1,511 |
| $264 (0%) ← now | -$0 | +$523 | +$1,170 | +$2,038 |
| $269 (+2%) | +$282 | +$823 | +$1,504 | +$2,565 |
| $277 (+5%) | +$678 | +$1,239 | +$1,957 | +$3,356 |
| $285 (+8%) ← target | +$1,050 | +$1,625 | +$2,363 | +$4,172 |
| $290 (+10%) | +$1,262 | +$1,842 | +$2,585 | +$4,172 |
| $303 (+15%) | +$1,759 | +$2,337 | +$3,063 | +$4,172 |
| $316 (+20%) | +$2,176 | +$2,736 | +$3,412 | +$4,172 |
Why This Strategy, Why Now
- RSI at 50
- IV -34% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if LRCX rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.