Recommendation: HV
Current Price: $6.16
Total Wheels: 3
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 |
|---|---|---|---|---|---|---|---|
| CHPT | 6.0 | 0.26 | 6.16 | 8 (2026-05-22) | 60.28% | 4.33% | 2.25x |
| CHPT | 2.0 | 1.48 | 6.16 | 178 (2027-01-15) | 96.61% | 74.00% | 2.15x |
| CHPT | 6.0 | 0.13 | 6.16 | 3 (2026-05-15) | 64.24% | 2.17% | 2.01x |
| CHPT | 5.0 | 0.07 | 6.16 | 13 (2026-05-29) | 88.22% | 1.40% | 1.27x |