Recommendation: HV
Current Price: $12.25
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 | 7.0 | 0.41 | 12.25 | 29 (2026-12-18) | 90.08% | 5.86% | 1.56x |
| CHPT | 5.0 | 0.35 | 12.25 | 74 (2027-02-19) | 93.91% | 7.00% | 1.24x |
| CHPT | 6.0 | 0.7 | 12.25 | 139 (2027-05-21) | 90.07% | 11.67% | 1.20x |
| CHPT | 4.0 | 0.4 | 12.25 | 139 (2027-05-21) | 95.02% | 10.00% | 1.18x |
| CHPT | 7.0 | 0.37 | 12.25 | 74 (2027-02-19) | 90.58% | 5.29% | 1.17x |
| CHPT | 4.0 | 0.1 | 12.25 | 74 (2027-02-19) | 97.41% | 2.50% | 1.09x |
| CHPT | 3.0 | 0.2 | 12.25 | 314 (2028-01-21) | 97.15% | 6.67% | 1.05x |