Heat the oven: Preheat to 425°F (220°C). Line a large sheet pan with parchment paper or foil for easy cleanup.
Mix the spices: In a small bowl, combine chili powder, cumin, smoked paprika, garlic powder, onion powder, oregano, salt, black pepper, and cayenne if using.
Prep the chicken and veggies: Slice the chicken into thin strips, about 1/2 inch wide. Slice the peppers and onion into similar widths so everything cooks evenly.
Season: Add the chicken, peppers, and onion to the sheet pan.
Drizzle with olive oil and sprinkle the spice mix over everything. Toss well with your hands or tongs until evenly coated and spread into a single layer.
Roast: Bake for 18–22 minutes, stirring halfway, until the chicken is cooked through and the peppers are tender with a bit of char on the edges. The chicken should reach 165°F (74°C) internally.
Finish with lime: Squeeze the lime over the hot fajitas.
If you like, add a little lime zest and a handful of chopped cilantro for freshness.
Warm tortillas: Wrap tortillas in foil and place in the oven for the last 5 minutes, or heat them in a dry skillet until soft and pliable.
Serve: Pile the chicken and veggies into warm tortillas. Add avocado, salsa, cheese, sour cream, or hot sauce to taste.