Recommendation: NO
Current Price: $2099.90
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 | 2030.0 | 81.5 | 2099.90 | 24 (2026-03-06) | 62.51% | 4.01% | 1.30x |
| MELI | 2000.0 | 72.6 | 2099.90 | 24 (2026-03-06) | 66.21% | 3.63% | 1.28x |
| MELI | 2080.0 | 191.2 | 2099.90 | 98 (2026-06-18) | 56.84% | 9.19% | 1.14x |