Own KLAC Stock? Here Is How To Collect 21% A Year On It

Get paid a real income now on your KLA shares, income you keep no matter what, in exchange for agreeing to sell at a higher price if the stock gets there. KLA (KLAC) has been a monster performer, riding the AI-fueled boom in semiconductor investment. But after a huge run, the stock now trades about 32% below its 52-week high, leaving many long-term holders wondering what comes next.

For those owners, there's a straightforward way to get paid for their patience, generating a meaningful cash income stream right now on shares they already hold. 21% annualized income on KLAC shares you already own, with 20% of upside room, by selling a covered call. You own (or buy) 100 shares of KLAC near today's price of $203.72. Sell one call option on KLAC expiring 6/17/2027, with a strike price of $244, about 20% above today.

Collect roughly $3,555 in premium up front per contract (each contract covers 100 shares), which you keep no matter what the stock does. That premium is about 21% annualized on the $20,372 of stock, income you earn just for holding. If KLAC finishes above $244, your shares are called away at $244.

Counting the premium, your total return works out to about 46% annualized, but you give up any gains above the strike. If KLAC finishes below $244 on 6/17/2027, the call expires worthless, and you keep the full $3,555 premium and all your shares. That is about 17% over 307 days, income earned just for holding, and you are free to sell another call.

If KLAC finishes above $244, your 100 shares are called away at $244. You still keep the $3,555 premium, and counting it your total gain works out to about 37% over the holding period (about 46% annualized), a healthy exit. The cost of the trade is that any gain above $244 is no longer yours.

And if the stock instead falls, you keep the premium but still ride the shares down: the premium offsets the first 17% of the decline over the holding period and nothing beyond it. The Real Question: How Much Upside Is At Stake? The trade's only real cost is the upside you cap.