Recommendation: NO
Current Price: $1970.15
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 | 1960.0 | 115.1 | 1970.15 | 30 (2026-03-20) | 54.62% | 5.87% | 1.30x |
| MELI | 1900.0 | 89.1 | 1970.15 | 30 (2026-03-20) | 62.32% | 4.69% | 1.27x |
| MELI | 1800.0 | 54.5 | 1970.15 | 30 (2026-03-20) | 74.01% | 3.03% | 1.20x |