Recommendation: NO
Current Price: $6.94
Total Wheels: 15
EditTypically you want to choose options that have a higher than 70% chance of being out of the money, since then you only have a 30% chance of actually acquiring the stock. Beyond that maximumizing the annualized rate of return is a good idea.
Annualized rate of return is computed fairly bullish as (max_return * odds + (1 - odds)) ^ (252 / calendar_days). This assumes that if you accidently acquire the stock you will be able to do something such that effectively get you a 1x return immediately.
| Ticker | Strike | Premium | Ticker Price | Calendar Days To Expiration | Odds Out Of The Money % | Maximum Return % | Annualized Rate Of Return |
|---|---|---|---|---|---|---|---|
| FCEL | 6.0 | 0.86 | 6.94 | 84 (2026-07-17) | 70.73% | 14.33% | 1.34x |
| FCEL | 5.5 | 0.01 | 6.94 | 4 (2026-03-27) | 96.74% | 0.18% | 1.09x |
| FCEL | 5.0 | 0.01 | 6.94 | 8 (2026-04-02) | 98.24% | 0.20% | 1.06x |