Recommendation: NO
Current Price: $0.51
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 |
|---|---|---|---|---|---|---|---|
| VERU | 0.5 | 0.04 | 0.51 | 4 (2025-05-09) E | 57.98% | 8.00% | 9.83x |
| VERU | 0.5 | 0.05 | 0.51 | 9 (2025-05-16) E | 58.52% | 10.00% | 4.92x |
| VERU | 0.5 | 0.2 | 0.51 | 119 (2025-10-17) E | 71.12% | 40.00% | 1.70x |