Recommendation: HV
Current Price: $37.01
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 | 0.8 | 37.01 | 6 (2026-08-21) | 80.21% | 2.46% | 2.27x |
| APPN | 22.5 | 4.62 | 37.01 | 111 (2027-01-15) | 84.24% | 20.53% | 1.44x |
| APPN | 20.0 | 2.2 | 37.01 | 71 (2026-11-20) | 88.57% | 11.00% | 1.39x |
| APPN | 17.5 | 0.05 | 37.01 | 6 (2026-08-21) | 98.96% | 0.29% | 1.13x |
| APPN | 20.0 | 0.05 | 37.01 | 6 (2026-08-21) | 98.82% | 0.25% | 1.11x |
| APPN | 17.5 | 0.3 | 37.01 | 71 (2026-11-20) | 96.39% | 1.71% | 1.06x |
| APPN | 12.5 | 0.14 | 37.01 | 111 (2027-01-15) | 98.47% | 1.12% | 1.03x |