FLGT Covered Call Strategy
FLGT (Fulgent Genetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Fulgent Genetics, Inc., together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally. The company offers genetic tests comprising Focus and Comprehensive oncology panels tests; Beacon carrier screening panels test for inherited conditions; solid tumor molecular profiling for somatic cancer testing; rapid whole genome testing for children in NICU and PICU; newborn genetic analysis panel; single front-line test to detect ataxia-related variants and repeat expansions through sequencing; picture genetics, a patient-initiated genetic testing; whole exome and clinical exome panel tests; whole genome, mutation, and repeat expansion testing services, as well as research service tests. It also provides next generation sequencing and reverse transcription polymerase chain reaction-based tests, as well as antigen-based diagnostic tests for the detection of SARS-CoV-2. In addition, the company offers flow cytometry, a cell analysis technique providing diagnosis, prognosis, and monitoring of malignancies; fluorescence in-situ hybridization for detecting and locating a specific DNA sequence on a chromosome; immunohistochemistry, an imaging technique used to visualize antigens in cells; cytogenetics, which analyzes the chromosome set for numerical and structural abnormalities; and molecular testing that includes hematopoietic and solid tumor molecular assays. The company serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. Fulgent Genetics has strategic partnership with Helio Health, Inc. to commercialize blood-based early cancer detection tests.
FLGT (Fulgent Genetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $453.3M, a beta of 0.88 versus the broader market, a 52-week range of 13.46-31.04, average daily share volume of 656K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how FLGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places FLGT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on FLGT?
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 FLGT snapshot
As of May 15, 2026, spot at $15.74, ATM IV 44.90%, IV rank 10.19%, expected move 12.87%. The covered call on FLGT 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 34-day expiry.
Why this covered call structure on FLGT specifically: FLGT IV at 44.90% is on the cheap side of its 1-year range, which means a premium-selling FLGT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.87% (roughly $2.03 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLGT should anchor to the underlying notional of $15.74 per share and to the trader's directional view on FLGT stock.
FLGT covered call setup
The FLGT 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 FLGT near $15.74, the first option leg uses a $16.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLGT chain at a 34-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 FLGT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.74 | long |
| Sell 1 | Call | $16.53 | N/A |
FLGT covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FLGT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on FLGT. 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.
When traders use covered call on FLGT
Covered calls on FLGT are an income strategy run on existing FLGT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
FLGT thesis for this covered call
The market-implied 1-standard-deviation range for FLGT extends from approximately $13.71 on the downside to $17.77 on the upside. A FLGT covered call collects premium on an existing long FLGT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FLGT will breach that level within the expiration window. Current FLGT IV rank near 10.19% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on FLGT at 44.90%. As a Healthcare name, FLGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLGT-specific events.
FLGT 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. FLGT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLGT alongside the broader basket even when FLGT-specific fundamentals are unchanged. Short-premium structures like a covered call on FLGT carry tail risk when realized volatility exceeds the implied move; review historical FLGT earnings reactions and macro stress periods before sizing. Always rebuild the position from current FLGT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on FLGT?
- A covered call on FLGT is the covered call strategy applied to FLGT (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 FLGT stock trading near $15.74, the strikes shown on this page are snapped to the nearest listed FLGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLGT 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 FLGT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 44.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLGT covered call?
- The breakeven for the FLGT covered call priced on this page is no defined breakeven on the modeled curve 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 FLGT market-implied 1-standard-deviation expected move is approximately 12.87%; 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 FLGT?
- Covered calls on FLGT are an income strategy run on existing FLGT 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 FLGT implied volatility affect this covered call?
- FLGT ATM IV is at 44.90% with IV rank near 10.19%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.