Recommendation: HV
Current Price: $19.22
Total Wheels: 5
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 |
|---|---|---|---|---|---|---|---|
| APPN | 17.5 | 0.8 | 19.22 | 25 (2026-06-18) | 71.37% | 4.57% | 1.38x |
| APPN | 17.5 | 1.8 | 19.22 | 71 (2026-08-21) | 67.20% | 10.29% | 1.27x |
| APPN | 17.5 | 2.22 | 19.22 | 176 (2027-01-15) | 67.18% | 12.69% | 1.12x |
| APPN | 17.5 | 4.55 | 19.22 | 441 (2028-01-21) | 69.92% | 26.00% | 1.10x |