First Advantage Corporation (FA) Covered Calls

First American Financial Corporation is a premier provider of title insurance and settlement services to the real estate and mortgage industries. The company offers a comprehensive suite of products including title searches, closing services, home warranties, and property data analytics. Through its specialized segments, it serves homebuyers, sellers, and commercial professionals by ensuring the integrity of property transfers and providing risk mitigation solutions across North America.

You can sell covered calls on First Advantage Corporation to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for FA (prices last updated Tue 4:16 PM ET):

First Advantage Corporation (FA) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
9.07 +0.12 7.68 14.41 1.2M - 1.6
Covered Calls For First Advantage Corporation (FA)
Expiration Strike Call Bid Net Debit Return
If Flat
Annualized
Return If Flat
Mar 20 10 0.10 14.31 -30.1% -439.5%
Apr 17 10 0.00 14.41 -30.6% -210.7%
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First American Financial Corporation (FA) is a leading financial services firm dedicated to the real estate and mortgage sectors. With a history spanning over a century, the company has established itself as a critical infrastructure provider for property transactions. Its primary operations involve conducting title searches to uncover liens or ownership disputes and providing insurance policies that protect lenders and owners against future losses related to title defects.

The company operates through two main reporting segments: Title Insurance and Services, and Specialty Insurance. Beyond its flagship title products, the company is a major provider of home warranties, which cover the repair or replacement of essential home systems and appliances. It also maintains one of the largest property databases in the United States, offering data and analytics services that help mortgage lenders and real estate professionals make informed, risk-based decisions.

Competitive Landscape

The competitive landscape for First American is characterized by a few large-scale national providers and a fragmented network of local agencies. Its most direct rival is Fidelity National Financial, which currently holds the largest market share in the title industry. Other significant competitors that are publicly traded on the NYSE or NASDAQ and have active options markets include Stewart Information Services and Old Republic International.

In the adjacent home warranty and property data sectors, the company competes with specialized firms such as Frontdoor and data providers like Intercontinental Exchange. First American distinguishes itself through its extensive proprietary "title plants," which are historical record collections that allow for faster and more accurate title searches than many smaller competitors can achieve. This technical advantage is a key barrier to entry in the specialized real estate services market.

Strategic Outlook

Strategic innovation is focused on the digital transformation of the real estate closing process through the integration of artificial intelligence and automated underwriting. The company is developing proprietary platforms to enable end-to-end digital closings, aiming to reduce the time and paperwork associated with traditional property transfers. These efforts include the deployment of generative AI tools to assist title agents in processing complex documents and identifying potential fraud more efficiently.

The outlook involves a continued emphasis on diversifying revenue streams through the expansion of data-centric products and commercial title services. Management is prioritizing the modernization of legacy infrastructure to drive productivity gains and improve profit margins. By leveraging its vast data assets to offer new compliance and risk-monitoring solutions, the company aims to solidify its role as a technology-led leader in the evolving housing and mortgage ecosystem.