Cash-Secured Put Entries on Mega Caps
Cash-Secured Put16 trades pass on LRCX
- Annualized return
- 8.5% to 39.7%
- Probability of profit
- 79.6% to 95.7%
Lam Research Corp · Industrials
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LRCX last closed at $225.92 with 30-day implied volatility of 63.2%. That is in the lower half of its one-year range (IV rank 35), so premiums are on the modest side for LRCX. Measured by IV percentile, IV is higher than 52% of the past year's readings. Options expiring Dec 11 (28 days out) price a one standard deviation move of about $39.90, or 17.7%.
The price is below both its 50-day (-18.6%) and 200-day (-20.4%) moving averages. It is 47.9% below its 52-week high and 61.8% above its 52-week low. The 14-day RSI of 41.9 is between 30 and 70, neither overbought nor oversold. The 14-day average true range is $16.40, about 7.3% of the price, a measure of a typical day's range.
Option volume at the close (42.3K contracts) was 0.8x its average, close to normal. A beta of 3.34 means LRCX has tended to move about 3.3 times as much as the broad market. 3 of our preset screens found trades on LRCX at the close, led by Cash-Secured Put Entries on Mega Caps with 16 trades.
Expected move = price x at-the-money IV x the square root of (days to expiration / 365), a one standard deviation range. The straddle is the at-the-money call plus put, the market's own price for a move. Compare expected moves across stocks.
| Expiration | IV | Expected move | 1 SD range | Straddle |
|---|---|---|---|---|
| Nov 20, 20267 days | 70.4% | ±$22.03 (9.8%) | $203.89 to $247.95 | $17.55 |
| Dec 11, 202628 days | 63.8% | ±$39.90 (17.7%) | $186.02 to $265.82 | $31.70 |
| Jan 15, 202763 days | 61.0% | ±$57.25 (25.3%) | $168.67 to $283.17 | $45.83 |
| Feb 19, 202798 days | 61.9% | ±$72.50 (32.1%) | $153.42 to $298.42 | $57.78 |
Each expiration has its own implied volatility, and short-dated IV reacts more to near-term events, so the nearest expiration can differ a lot from the 30-day figure.
Counts and ranges for LRCX from our preset scans at the last close. Open a preset in the app to see each trade with its strikes, prices, and risk, refreshed intraday. Income strategies show annualized return; the rest show return on risk.
16 trades pass on LRCX
1 trade passes on LRCX
1 trade passes on LRCX
Market data as of the prior close, for information and education only. Not investment advice. Options involve substantial risk and are not suitable for every investor. See our Terms of Service.