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Why FTNT Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Fortinet Inc (Technology) · $191.27 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
FTNT is trading at $191.27 with RSI at 71 (overbought territory). Options IV is at 53% — 28% below its 30-day average of 73%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
71
IV Today
52.7%
IV vs 30d Avg
-28%
MACD
bullish
ADX
29
MFI
63
The Setup
FTNT Covered Call
LONG STOCK
100 shares @ $191.27
SHORT CALL
$205 Dec '26 · $12.95/sh
Net Cost
$17,832
Max Profit
+$2,668
Break-even
$178.32
Projected P&L at Target
+$2,668
(15.0%)
P&L at Expiry
P&L Scenarios
What happens at different FTNT prices by expiry:
| FTNT Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $153 (-20%) | -$2,752 | -$2,627 | -$2,543 | -$2,530 |
| $163 (-15%) | -$1,956 | -$1,773 | -$1,619 | -$1,574 |
| $172 (-10%) | -$1,227 | -$984 | -$739 | -$618 |
| $182 (-5%) | -$573 | -$275 | +$66 | +$339 |
| $187 (-2%) | -$220 | +$106 | +$499 | +$912 |
| $191 (0%) ← now | -$0 | +$341 | +$763 | +$1,295 |
| $195 (+2%) | +$207 | +$561 | +$1,008 | +$1,678 |
| $201 (+5%) | +$492 | +$860 | +$1,333 | +$2,251 |
| $205 (+7%) ← target | +$682 | +$1,057 | +$1,539 | +$2,668 |
| $210 (+10%) | +$907 | +$1,285 | +$1,769 | +$2,668 |
| $220 (+15%) | +$1,250 | +$1,622 | +$2,082 | +$2,668 |
| $230 (+20%) | +$1,529 | +$1,882 | +$2,294 | +$2,668 |
Why This Strategy, Why Now
- RSI at 71 — extended, ideal for selling calls
- IV -28% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 29 — moderate trend
- No squeeze — no imminent breakout
Key Risks
FTNT has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if FTNT approaches the strike before expiry.
ADX at 29 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.