Recommendation: NO
Current Price: $1612.02
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 | 1600.0 | 58.7 | 1612.02 | 19 (2026-04-17) | 55.16% | 3.67% | 1.30x |
| MELI | 1500.0 | 25.1 | 1612.02 | 19 (2026-04-17) | 76.61% | 1.67% | 1.18x |
| MELI | 1550.0 | 6.2 | 1612.02 | 4 (2026-03-27) | 83.14% | 0.40% | 1.18x |
| MELI | 1600.0 | 121.5 | 1612.02 | 63 (2026-06-18) | 55.82% | 7.59% | 1.18x |