Recommendation: NO
Current Price: $7.19
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 | 7.0 | 1.75 | 7.19 | 116 (2026-07-17) | 64.77% | 25.00% | 1.39x |
| FCEL | 5.0 | 0.68 | 7.19 | 116 (2026-07-17) | 81.30% | 13.60% | 1.26x |
| FCEL | 5.0 | 1.23 | 7.19 | 246 (2027-01-15) | 80.60% | 24.60% | 1.20x |