Recommendation: NO
Current Price: $147.40
Total Wheels: 30
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 |
|---|---|---|---|---|---|---|---|
| FAS | 145.91 | 43.13 | 147.40 | 145 (2027-01-15) | 65.76% | 29.56% | 1.36x |
| FAS | 143.0 | 28.5 | 147.40 | 125 (2026-12-18) | 63.02% | 19.93% | 1.27x |