Recommendation: HV
Current Price: $1.97
Total Wheels: 34
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 |
|---|---|---|---|---|---|---|---|
| SAVA | 1.5 | 0.05 | 1.97 | 14 (2026-02-20) | 85.20% | 3.33% | 1.66x |
| SAVA | 1.5 | 0.12 | 1.97 | 34 (2026-03-20) | 80.28% | 8.00% | 1.59x |