Recommendation: NO
Current Price: $1.19
Total Wheels: 2
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 |
|---|---|---|---|---|---|---|---|
| CGC | 1.0 | 0.08 | 1.19 | 19 (2025-07-18) | 74.78% | 8.00% | 2.16x |
| CGC | 1.0 | 0.04 | 1.19 | 14 (2025-07-11) | 79.80% | 4.00% | 1.76x |
| CGC | 1.0 | 0.01 | 1.19 | 4 (2025-06-27) | 91.86% | 1.00% | 1.59x |
| CGC | 1.0 | 0.5 | 1.19 | 409 (2027-01-15) E | 82.61% | 50.00% | 1.24x |
| CGC | 0.5 | 0.01 | 1.19 | 24 (2025-07-25) | 97.96% | 2.00% | 1.23x |