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FTV wheel strategy CSP calculator — model cash-secured put entry, assignment, and covered call exit for the full wheel cycle.
Fortive Corp. — Model a full Wheel cycle: CSP entry, assignment, and CC exit
Fortive Corp. (FTV) is a Industrials stock with actively traded listed options. The wheel cycle ties up $6,000 per contract in the CSP phase, which typically needs rich premium pricing to compensate for the capital commitment. IV Rank 30% is 59pp below the Industrials sector median of 89%. Compressed regime — the model leaves the Wheel context unconfirmed until IV expansion lifts premium pricing. VRP is 5.1pp. FTV covered call strikes.
Wheel Cycle
Capital: ~$5,986Unfavorable — 1 condition flagged
The Wheel cycles between selling puts and covered calls. This page diagnoses whether the current regime reads as a confirmed Wheel context for this ticker — fundamentals, IV Rank, VRP, and assignment risk all contribute.
Stock ownership comfort at the put strike is a separate decision from the model's regime reading.
Combines: capital requirement, IV Rank, VRP, signal strength, premium environment, liquidityStock price (for capital calc), IV Rank, VRP, bid-ask spreads, open interest
ORATS options data + VolRadar signal composite
The Wheel requires willingness to own shares at the put strike. Assignment risk is real — stock can drop significantly below your strike. Capital requirements vary with stock price.
After assignment on your cash secured put, the options wheel transitions to selling covered calls. These are the best current covered call opportunities to reduce cost basis:
Already own FTV shares from a cash secured put assignment? These covered call and hedge strategies work with your existing position to generate income or protect gains.
Own shares + sell OTM call — generate income from existing position.
Same as Short Put but with full cash to buy shares at strike if assigned.
Buy deep ITM LEAPS call + sell short-term OTM call — like covered call but less capital.
Own shares + buy OTM put — insurance against downside while keeping upside.
Own shares + buy put + sell call — zero-cost or low-cost downside protection.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
The wheel on Fortive Corp. begins with selling a cash-secured put, collecting premium while agreeing to buy 100 shares if the stock drops below your strike. At $59.86, one contract requires approximately $5,700 in cash. If assigned, Phase 2 begins: sell covered calls at or above your cost basis to recoup and profit.
Fortive Corp.'s current signal is weak — the model leaves the Wheel context unconfirmed in this regime. Options may be fairly priced or underpriced relative to expected movement. Wider strikes sit in a different assignment-probability class than at-the-money strikes, which is a separate decision from the model's regime reading.
The covered-call leg shows a bid-ask spread of 44.4% on the top strike. For the wheel to work efficiently, both CSP and CC legs need tight bid-ask spreads. Wide spreads erode premium on every cycle — compounding over multiple wheel rotations. Use limit orders and verify that spread costs do not exceed 10-15% of the premium collected per leg. If fills are consistently poor, consider more liquid alternatives.
Cash-secured: $5,700 per contract (100 shares x $57 strike). On margin (~20% requirement): approximately $1,140. Follow the 5% rule — no single wheel position should exceed 5% of your total account.
Most wheel traders sell puts 5–10% below current price (0.20–0.30 delta). For FTV at $59.86, that means selling puts around $57–$54. In higher IV environments, you can sell further OTM while still collecting meaningful premium.
If assigned, you buy 100 shares at the put strike price. Your effective cost basis equals the strike minus premium collected (e.g., $57 - premium). Move to Phase 2: sell covered calls at or above your cost basis. Each call premium further reduces your cost basis.
Annualized returns vary with IV conditions. With current VRP of +5.1pp, the premium environment is strong for FTV. Under model-confirmed Wheel-context regimes, experienced wheel traders historically target 15–30% annualized. Conservative 5% OTM strikes with 30–45 DTE historically yield 12–20% annualized in typical conditions. The key variables are IV Rank (higher = richer premiums), strike distance (closer = more premium but higher assignment probability), and DTE (30–45 days is the typical theta-decay reference window).
The biggest risk is assignment into a declining stock. If Fortive Corp. drops sharply below your put strike, you own 100 shares at a loss — and subsequent covered calls may not generate enough premium to recover before the stock falls further. At Fortive Corp.'s current price of $59.86, assignment means holding $5,700 in a single position. To manage this: size each wheel to no more than 5% of your account, avoid selling CSPs into earnings, and confirm a positive VRP edge before entering.
Fortive Corp. currently shows weak conditions — the model leaves the Wheel context unconfirmed. The regime favors structures that don't compound capital commitment across cycles; trade-management decisions inside an active cycle are separate from the model's regime reading.
The covered-call leg shows a bid-ask spread of 44.4% with 96 open interest. The wheel involves repeated CSP and CC cycles, so spread costs compound across the cycle. Slippage above 10-15% of the premium per leg materially erodes annualized yield; limit orders sit in a different fill-quality class than market orders, and chain liquidity quality determines roll efficiency between cycles.
Free embeddable tool: Wheel Calculator — add wheel strategy analysis to any site. No signup, no API key.
All P/L calculations exclude commissions, fees, and slippage. Premiums are model estimates (not live quotes) — verify with broker. Actual returns may differ significantly.
100 shares × $57 strike · On margin (~20%): ~$1,140
Sell call at or above cost basis ($55.28) to ensure profit if called away.
Assumes assignment at expiration. American-style options may be assigned early, especially near ex-dividend dates or deep ITM.