FIS Covered Call Strategy
FIS (Fidelity National Information Services, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.
Fidelity National Information Services, Inc. provides solutions to financial institutions, businesses, and developers worldwide. The company operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. It provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. The company also offers trading and assets, lending, leveraged and syndicated loan markets, and treasury and risk solutions. Fidelity National Information Services, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.
FIS (Fidelity National Information Services, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $19.94B, a trailing P/E of 7.44, a beta of 0.80 versus the broader market, a 52-week range of 37.42-82.74, average daily share volume of 6.7M, a public-listing history dating back to 2001, approximately 44K full-time employees. These structural characteristics shape how FIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places FIS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.44 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FIS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on FIS?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
Current FIS snapshot
As of June 29, 2026, spot at $38.59, ATM IV 40.99%, IV rank 60.95%, expected move 11.75%. The covered call on FIS 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 31-day expiry.
Why this covered call structure on FIS specifically: FIS IV at 40.99% is mid-range versus its 1-year history, so the credit collected on a FIS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.75% (roughly $4.54 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIS should anchor to the underlying notional of $38.59 per share and to the trader's directional view on FIS stock.
FIS covered call setup
The FIS covered call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FIS near $38.59, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIS chain at a 31-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 FIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.59 | long |
| Sell 1 | Call | $41.00 | $0.85 |
FIS covered call risk and reward
- Net Premium / Debit
- -$3,774.00
- Max Profit (per contract)
- $326.00
- Max Loss (per contract)
- -$3,773.00
- Breakeven(s)
- $37.74
- Risk / Reward Ratio
- 0.086
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
FIS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on FIS. 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% | -$3,773.00 |
| $8.54 | -77.9% | -$2,919.86 |
| $17.07 | -55.8% | -$2,066.73 |
| $25.60 | -33.7% | -$1,213.59 |
| $34.14 | -11.5% | -$360.46 |
| $42.67 | +10.6% | +$326.00 |
| $51.20 | +32.7% | +$326.00 |
| $59.73 | +54.8% | +$326.00 |
| $68.26 | +76.9% | +$326.00 |
| $76.79 | +99.0% | +$326.00 |
When traders use covered call on FIS
Covered calls on FIS are an income strategy run on existing FIS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
FIS thesis for this covered call
The market-implied 1-standard-deviation range for FIS extends from approximately $34.05 on the downside to $43.13 on the upside. A FIS covered call collects premium on an existing long FIS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FIS will breach that level within the expiration window. Current FIS IV rank near 60.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on FIS should anchor more to the directional view and the expected-move geometry. As a Technology name, FIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIS-specific events.
FIS covered call 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. FIS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIS alongside the broader basket even when FIS-specific fundamentals are unchanged. Short-premium structures like a covered call on FIS carry tail risk when realized volatility exceeds the implied move; review historical FIS earnings reactions and macro stress periods before sizing. Always rebuild the position from current FIS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on FIS?
- A covered call on FIS is the covered call strategy applied to FIS (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With FIS stock trading near $38.59, the strikes shown on this page are snapped to the nearest listed FIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FIS covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the FIS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 40.99%), the computed maximum profit is $326.00 per contract and the computed maximum loss is -$3,773.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FIS covered call?
- The breakeven for the FIS covered call priced on this page is roughly $37.74 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 FIS market-implied 1-standard-deviation expected move is approximately 11.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a covered call on FIS?
- Covered calls on FIS are an income strategy run on existing FIS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current FIS implied volatility affect this covered call?
- FIS ATM IV is at 40.99% with IV rank near 60.95%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.