KLAC Covered Call
Every out-of-the-money KLAC call expiring Oct 23, 2026, priced from the settled chain: what it pays, what it yields, and where the trade stops making money. The richest right now is the $170.00 strike at 6.3% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
KLAC covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $167.36 share price, not by delta — the published chain carries premiums and open interest, not greeks, and inventing a delta here would be inventing data. Premium is the bid/ask midpoint where both sides quote, otherwise the last trade. The chain artifact publishes the six nearest expirations, so this is the longest one listed — 36 days out. Annualising anything shorter than a week says more about compounding arithmetic than about the trade, so those cells stay blank.
| Strike | % OTM | Premium | Yield | Annualised | Break-even | If assigned | OI |
|---|---|---|---|---|---|---|---|
| $170.00 | 1.6% | $10.50 | 6.3% | 63.6% | $156.86 | 7.9% | 159 |
| $175.00 | 4.6% | $8.70 | 5.2% | 52.7% | $158.66 | 9.8% | 4 |
| $185.00 | 10.5% | $5.80 | 3.5% | 35.1% | $161.56 | 14.0% | 10 |
What the $170.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $167.36. Profit caps at $1,314.00 if KLAC finishes above $170.00; below $156.86 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $125.52 | $-31.34 | $-3,134.00 |
| $135.98 | $-20.88 | $-2,088.00 |
| $146.44 | $-10.42 | $-1,042.00 |
| $156.90 | +$0.04 | +$4.00 |
| $167.36 | +$10.50 | +$1,050.00 |
| $177.82 | +$13.14 | +$1,314.00 |
| $188.28 | +$13.14 | +$1,314.00 |
| $198.74 | +$13.14 | +$1,314.00 |
| $209.20 | +$13.14 | +$1,314.00 |
When a covered call fits KLAC
A covered call sells someone else the right to buy your shares at the strike. It pays you today and caps your upside there, so it suits a holding you are content to own flat and content to sell at the strike — not one you expect to run.
The premium is compensation for implied volatility. Rich implied volatility pays more, and usually pays more because the market expects a move; a high annualised number on a name about to report earnings is a warning as often as an opportunity. Check the KLAC expected move and the open-interest walls before assuming the strike is far enough away.
Full mechanics, assignment and rolling are in the covered call guide; to model a different strike or a multi-leg version, open the profit calculator with KLAC loaded.
Questions
- What does a KLAC covered call pay right now?
- The $170.00 call expiring Oct 23, 2026 (36 days out) collects $10.50 per share, 6.3% of the $167.36 share price, or 63.6% annualised if you repeat it.
- What is the break-even on a KLAC covered call?
- Selling the $170.00 call against stock bought at $167.36 breaks even at $156.86 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if KLAC closes above the strike?
- The shares are called away at $170.00. Total return is 7.9%: the premium plus the move from $167.36 up to the strike. Gains above the strike belong to the buyer.
More on KLAC
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Educational, not investment advice. Options involve risk. Open interest is reported with a one-session lag by OCC, so these levels describe positioning as of the last settled session, not live intraday flow.