Recommendation: NO
Current Price: $101.30
Total Wheels: 8
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 |
|---|---|---|---|---|---|---|---|
| LULU | 100.0 | 8.85 | 101.30 | 80 (2027-01-15) | 57.26% | 8.85% | 1.17x |
| LULU | 90.0 | 1.88 | 101.30 | 40 (2026-11-20) | 80.15% | 2.09% | 1.11x |
| LULU | 93.0 | 0.2 | 101.30 | 5 (2026-10-02) | 92.93% | 0.22% | 1.11x |
| LULU | 85.0 | 6.9 | 101.30 | 189 (2027-06-17) | 74.89% | 8.12% | 1.08x |
| LULU | 75.0 | 4.3 | 101.30 | 189 (2027-06-17) | 83.36% | 5.73% | 1.06x |