Recommendation: NO
Current Price: $271.08
Total Wheels: 3
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 |
|---|---|---|---|---|---|---|---|
| SPXL | 260.0 | 1.0 | 271.08 | 3 (2026-05-15) | 84.26% | 0.38% | 1.18x |
| SPXL | 230.0 | 4.5 | 271.08 | 27 (2026-06-18) | 84.09% | 1.96% | 1.16x |
| SPXL | 265.0 | 39.7 | 271.08 | 178 (2027-01-15) | 60.71% | 14.98% | 1.13x |
| SPXL | 255.0 | 0.55 | 271.08 | 3 (2026-05-15) | 90.90% | 0.22% | 1.10x |