Recommendation: HV
Current Price: $0.58
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 | 0.5 | 0.01 | 0.58 | 4 (2025-05-09) | 80.37% | 2.00% | 2.23x |
| CHPT | 0.5 | 0.11 | 0.58 | 74 (2025-08-15) E | 71.42% | 22.00% | 1.64x |
| CHPT | 0.5 | 0.01 | 0.58 | 9 (2025-05-16) | 80.39% | 2.00% | 1.56x |
| CHPT | 0.5 | 0.13 | 0.58 | 144 (2025-11-21) E | 72.13% | 26.00% | 1.35x |
| CHPT | 0.5 | 0.12 | 0.58 | 184 (2026-01-16) E | 72.10% | 24.00% | 1.24x |