Recommendation: NO
Current Price: $4.66
Total Wheels: 21
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 |
|---|---|---|---|---|---|---|---|
| TLRY | 0.5 | 0.12 | 4.66 | 145 (2027-01-15) | 98.34% | 24.00% | 1.45x |
| TLRY | 1.5 | 0.94 | 4.66 | 410 (2028-01-21) | 95.45% | 62.67% | 1.33x |