Recommendation: HV
Current Price: $17.10
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 | 15.5 | 0.3 | 17.10 | 4 (2026-07-02) | 79.30% | 1.94% | 2.15x |
| FSLY | 14.0 | 0.05 | 17.10 | 4 (2026-07-02) | 94.97% | 0.36% | 1.19x |
| FSLY | 10.0 | 0.03 | 17.10 | 10 (2026-07-10) | 98.27% | 0.30% | 1.08x |
| FSLY | 2.5 | 0.08 | 17.10 | 145 (2027-01-15) | 99.06% | 3.20% | 1.06x |