Recommendation: HV
Current Price: $5.80
Total Wheels: 4
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 |
|---|---|---|---|---|---|---|---|
| FSLY | 5.5 | 0.33 | 5.80 | 4 (2025-05-09) E | 64.15% | 6.00% | 6.71x |
| FSLY | 5.0 | 0.16 | 5.80 | 4 (2025-05-09) E | 78.95% | 3.20% | 3.52x |
| FSLY | 4.0 | 0.07 | 5.80 | 4 (2025-05-09) E | 92.07% | 1.75% | 2.24x |
| FSLY | 4.5 | 0.08 | 5.80 | 4 (2025-05-09) E | 88.94% | 1.78% | 2.20x |
| FSLY | 5.0 | 0.25 | 5.80 | 14 (2025-05-23) E | 75.87% | 5.00% | 1.95x |
| FSLY | 5.0 | 0.27 | 5.80 | 19 (2025-05-30) E | 75.30% | 5.40% | 1.70x |
| FSLY | 4.5 | 0.15 | 5.80 | 19 (2025-05-30) E | 84.95% | 3.33% | 1.45x |
| FSLY | 4.0 | 0.1 | 5.80 | 19 (2025-05-30) E | 92.61% | 2.50% | 1.35x |
| FSLY | 4.5 | 0.15 | 5.80 | 24 (2025-06-06) E | 84.64% | 3.33% | 1.34x |
| FSLY | 5.0 | 0.63 | 5.80 | 99 (2025-09-19) E | 71.16% | 12.60% | 1.24x |
| FSLY | 2.5 | 0.05 | 5.80 | 34 (2025-06-20) E | 96.49% | 2.00% | 1.15x |