Recommendation: NO
Current Price: $18.61
Total Wheels: 1
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 |
|---|---|---|---|---|---|---|---|
| ICLN | 17.5 | 0.2 | 18.61 | 10 (2026-02-20) | 79.81% | 1.14% | 1.26x |
| ICLN | 17.5 | 0.3 | 18.61 | 15 (2026-02-27) | 75.77% | 1.71% | 1.24x |
| ICLN | 17.0 | 0.1 | 18.61 | 10 (2026-02-20) | 88.66% | 0.59% | 1.14x |
| ICLN | 16.0 | 0.05 | 18.61 | 10 (2026-02-20) | 94.07% | 0.31% | 1.08x |