Recommendation: NO
Current Price: $3.76
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 | 3.5 | 0.06 | 3.76 | 4 (2025-05-09) | 76.67% | 1.71% | 1.93x |
| FCEL | 1.0 | 0.05 | 3.76 | 184 (2026-01-16) E | 97.39% | 5.00% | 1.07x |