Recommendation: HV
Current Price: $8.57
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 | 8.5 | 0.65 | 8.57 | 6 (2026-02-13) | 55.64% | 7.65% | 5.76x |
| FSLY | 8.5 | 0.75 | 8.57 | 11 (2026-02-20) | 56.05% | 8.82% | 3.02x |
| FSLY | 2.5 | 0.21 | 8.57 | 31 (2026-03-20) | 95.98% | 8.40% | 1.88x |