Recommendation: HV
Current Price: $9.28
Total Wheels: 43
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 |
|---|---|---|---|---|---|---|---|
| FUBO | 7.0 | 5.78 | 9.28 | 210 (2027-01-15) | 93.91% | 82.57% | 1.99x |
| FUBO | 4.5 | 3.31 | 9.28 | 210 (2027-01-15) | 94.53% | 73.56% | 1.88x |
| FUBO | 3.5 | 2.54 | 9.28 | 210 (2027-01-15) | 95.75% | 72.57% | 1.88x |
| FUBO | 4.0 | 2.75 | 9.28 | 210 (2027-01-15) | 94.44% | 68.75% | 1.82x |
| FUBO | 2.5 | 1.5 | 9.28 | 210 (2027-01-15) | 96.19% | 60.00% | 1.73x |
| FUBO | 1.5 | 0.64 | 9.28 | 210 (2027-01-15) | 97.31% | 42.67% | 1.52x |