FTI Covered Call Strategy
FTI (TechnipFMC plc), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing systems; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services; research, engineering, manufacturing, and supply chain; and product management services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling and completion systems; surface wellheads and production trees systems; iComplete, a digitally enabled pressure control system; fracturing tree and manifold systems; pressure pumping; well service pumps; well control, safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; flowback and well testing services; skid systems; automation and digital systems; and flow measurement and automation solutions.
FTI (TechnipFMC plc) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $28.98B, a trailing P/E of 26.87, a beta of 0.74 versus the broader market, a 52-week range of 28.87-77.78, average daily share volume of 4.4M, a public-listing history dating back to 2001, approximately 21K full-time employees. These structural characteristics shape how FTI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places FTI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FTI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on FTI?
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 FTI snapshot
As of May 15, 2026, spot at $71.22, ATM IV 38.20%, IV rank 44.42%, expected move 10.95%. The covered call on FTI 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 63-day expiry.
Why this covered call structure on FTI specifically: FTI IV at 38.20% is mid-range versus its 1-year history, so the credit collected on a FTI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.95% (roughly $7.80 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTI should anchor to the underlying notional of $71.22 per share and to the trader's directional view on FTI stock.
FTI covered call setup
The FTI 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 FTI near $71.22, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTI chain at a 63-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 FTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $71.22 | long |
| Sell 1 | Call | $75.00 | $3.03 |
FTI covered call risk and reward
- Net Premium / Debit
- -$6,819.50
- Max Profit (per contract)
- $680.50
- Max Loss (per contract)
- -$6,818.50
- Breakeven(s)
- $68.20
- Risk / Reward Ratio
- 0.100
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.
FTI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on FTI. 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% | -$6,818.50 |
| $15.76 | -77.9% | -$5,243.90 |
| $31.50 | -55.8% | -$3,669.29 |
| $47.25 | -33.7% | -$2,094.69 |
| $62.99 | -11.5% | -$520.09 |
| $78.74 | +10.6% | +$680.50 |
| $94.49 | +32.7% | +$680.50 |
| $110.23 | +54.8% | +$680.50 |
| $125.98 | +76.9% | +$680.50 |
| $141.72 | +99.0% | +$680.50 |
When traders use covered call on FTI
Covered calls on FTI are an income strategy run on existing FTI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
FTI thesis for this covered call
The market-implied 1-standard-deviation range for FTI extends from approximately $63.42 on the downside to $79.02 on the upside. A FTI covered call collects premium on an existing long FTI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FTI will breach that level within the expiration window. Current FTI IV rank near 44.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on FTI should anchor more to the directional view and the expected-move geometry. As a Energy name, FTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTI-specific events.
FTI 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. FTI positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTI alongside the broader basket even when FTI-specific fundamentals are unchanged. Short-premium structures like a covered call on FTI carry tail risk when realized volatility exceeds the implied move; review historical FTI earnings reactions and macro stress periods before sizing. Always rebuild the position from current FTI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on FTI?
- A covered call on FTI is the covered call strategy applied to FTI (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 FTI stock trading near $71.22, the strikes shown on this page are snapped to the nearest listed FTI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTI 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 FTI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 38.20%), the computed maximum profit is $680.50 per contract and the computed maximum loss is -$6,818.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTI covered call?
- The breakeven for the FTI covered call priced on this page is roughly $68.20 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 FTI market-implied 1-standard-deviation expected move is approximately 10.95%; 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 FTI?
- Covered calls on FTI are an income strategy run on existing FTI 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 FTI implied volatility affect this covered call?
- FTI ATM IV is at 38.20% with IV rank near 44.42%, 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.