Recommendation: NO
Current Price: $1.59
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 |
|---|---|---|---|---|---|---|---|
| SNDL | 0.5 | 0.05 | 1.59 | 249 (2027-01-15) | 94.98% | 10.00% | 1.10x |
| SNDL | 1.5 | 0.37 | 1.59 | 514 (2028-01-21) | 67.57% | 24.67% | 1.08x |
| SNDL | 1.0 | 0.01 | 1.59 | 119 (2026-07-17) | 96.99% | 1.00% | 1.02x |