Recommendation: HV
Current Price: $5.29
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 | 2.0 | 1.48 | 5.29 | 214 (2027-01-15) | 95.93% | 74.00% | 1.88x |
| CHPT | 5.0 | 0.29 | 5.29 | 19 (2026-04-17) | 64.81% | 5.80% | 1.63x |
| CHPT | 5.0 | 0.49 | 5.29 | 39 (2026-05-15) | 63.33% | 9.80% | 1.48x |
| CHPT | 4.0 | 0.01 | 5.29 | 4 (2026-03-27) | 96.34% | 0.25% | 1.13x |