Recommendation: NO
Current Price: $2246.54
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 |
|---|---|---|---|---|---|---|---|
| MELI | 2200.0 | 66.8 | 2246.54 | 4 (2025-05-09) E | 60.30% | 3.04% | 2.50x |
| MELI | 2220.0 | 61.0 | 2246.54 | 4 (2025-05-09) E | 57.39% | 2.75% | 2.20x |
| MELI | 2215.0 | 59.19 | 2246.54 | 4 (2025-05-09) E | 58.43% | 2.67% | 2.18x |
| MELI | 2120.0 | 236.5 | 2246.54 | 74 (2025-08-15) E | 63.55% | 11.16% | 1.26x |