Recommendation: NO
Current Price: $26.76
Total Wheels: 3
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 |
|---|---|---|---|---|---|---|---|
| DKNG | 25.0 | 2.35 | 26.76 | 74 (2026-05-15) | 64.85% | 9.40% | 1.22x |
| DKNG | 25.0 | 2.52 | 26.76 | 98 (2026-06-18) | 64.79% | 10.08% | 1.18x |
| DKNG | 25.0 | 3.4 | 26.76 | 144 (2026-08-21) | 64.84% | 13.60% | 1.16x |
| DKNG | 22.5 | 2.33 | 26.76 | 144 (2026-08-21) | 73.53% | 10.36% | 1.14x |
| DKNG | 20.0 | 0.03 | 26.76 | 4 (2026-02-06) | 97.99% | 0.15% | 1.08x |