Recommendation: HV
Current Price: $35.02
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 | 32.5 | 2.9 | 35.02 | 80 (2027-01-15) | 65.75% | 8.92% | 1.20x |
| APPN | 27.5 | 0.2 | 35.02 | 15 (2026-10-16) | 93.02% | 0.73% | 1.12x |
| APPN | 30.0 | 8.32 | 35.02 | 580 (2028-12-15) | 73.61% | 27.73% | 1.08x |
| APPN | 20.0 | 2.0 | 35.02 | 345 (2028-01-21) | 88.00% | 10.00% | 1.06x |
| APPN | 22.5 | 0.21 | 35.02 | 40 (2026-11-20) | 95.40% | 0.93% | 1.06x |
| APPN | 12.5 | 0.14 | 35.02 | 80 (2027-01-15) | 98.34% | 1.12% | 1.04x |