Recommendation: HV
Current Price: $28.09
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 | 27.5 | 1.0 | 28.09 | 19 (2025-07-18) | 59.70% | 3.64% | 1.33x |
| APPN | 27.5 | 1.8 | 28.09 | 39 (2025-08-15) E | 58.40% | 6.55% | 1.27x |
| APPN | 25.0 | 0.77 | 28.09 | 39 (2025-08-15) E | 76.81% | 3.08% | 1.16x |
| APPN | 20.0 | 0.76 | 28.09 | 149 (2026-01-16) E | 87.23% | 3.80% | 1.06x |
| APPN | 20.0 | 0.4 | 28.09 | 84 (2025-10-17) E | 90.16% | 2.00% | 1.06x |