LRCX Cash-Secured Put Strategy
LRCX (Lam Research Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions. In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally.
LRCX (Lam Research Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $369.47B, a trailing P/E of 55.04, a beta of 1.82 versus the broader market, a 52-week range of 79.49-300, average daily share volume of 10.0M, a public-listing history dating back to 1984, approximately 19K full-time employees. These structural characteristics shape how LRCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.82 indicates LRCX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 55.04 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. LRCX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on LRCX?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current LRCX snapshot
As of May 15, 2026, spot at $285.73, ATM IV 64.61%, IV rank 73.71%, expected move 18.52%. The cash-secured put on LRCX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this cash-secured put structure on LRCX specifically: LRCX IV at 64.61% is rich versus its 1-year range, which favors premium-selling structures like a LRCX cash-secured put, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $52.93 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LRCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRCX should anchor to the underlying notional of $285.73 per share and to the trader's directional view on LRCX stock.
LRCX cash-secured put setup
The LRCX cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LRCX near $285.73, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRCX chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 LRCX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $270.00 | $12.63 |
LRCX cash-secured put risk and reward
- Net Premium / Debit
- +$1,262.50
- Max Profit (per contract)
- $1,262.50
- Max Loss (per contract)
- -$25,736.50
- Breakeven(s)
- $257.38
- Risk / Reward Ratio
- 0.049
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
LRCX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LRCX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$25,736.50 |
| $63.19 | -77.9% | -$19,418.96 |
| $126.36 | -55.8% | -$13,101.42 |
| $189.54 | -33.7% | -$6,783.89 |
| $252.71 | -11.6% | -$466.35 |
| $315.89 | +10.6% | +$1,262.50 |
| $379.06 | +32.7% | +$1,262.50 |
| $442.24 | +54.8% | +$1,262.50 |
| $505.41 | +76.9% | +$1,262.50 |
| $568.59 | +99.0% | +$1,262.50 |
When traders use cash-secured put on LRCX
Cash-secured puts on LRCX earn premium while a trader waits to acquire LRCX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LRCX.
LRCX thesis for this cash-secured put
The market-implied 1-standard-deviation range for LRCX extends from approximately $232.80 on the downside to $338.66 on the upside. A LRCX cash-secured put lets a trader earn premium while waiting to acquire LRCX at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current LRCX IV rank near 73.71% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on LRCX at 64.61%. As a Technology name, LRCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRCX-specific events.
LRCX cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. LRCX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LRCX alongside the broader basket even when LRCX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LRCX carry tail risk when realized volatility exceeds the implied move; review historical LRCX earnings reactions and macro stress periods before sizing. Always rebuild the position from current LRCX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LRCX?
- A cash-secured put on LRCX is the cash-secured put strategy applied to LRCX (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With LRCX stock trading near $285.73, the strikes shown on this page are snapped to the nearest listed LRCX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LRCX cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the LRCX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 64.61%), the computed maximum profit is $1,262.50 per contract and the computed maximum loss is -$25,736.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LRCX cash-secured put?
- The breakeven for the LRCX cash-secured put priced on this page is roughly $257.38 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current LRCX market-implied 1-standard-deviation expected move is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on LRCX?
- Cash-secured puts on LRCX earn premium while a trader waits to acquire LRCX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LRCX.
- How does current LRCX implied volatility affect this cash-secured put?
- LRCX ATM IV is at 64.61% with IV rank near 73.71%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.