Recommendation: HV
Current Price: $6.76
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 | 6.5 | 0.45 | 6.76 | 29 (2025-08-01) | 61.51% | 6.92% | 1.44x |
| FSLY | 6.5 | 0.06 | 6.76 | 4 (2025-06-27) | 76.29% | 0.92% | 1.42x |
| FSLY | 6.0 | 0.15 | 6.76 | 14 (2025-07-11) | 78.67% | 2.50% | 1.42x |
| FSLY | 5.0 | 0.15 | 6.76 | 39 (2025-08-15) E | 87.30% | 3.00% | 1.18x |
| FSLY | 5.0 | 0.21 | 6.76 | 64 (2025-09-19) E | 85.23% | 4.20% | 1.15x |
| FSLY | 5.0 | 0.45 | 6.76 | 129 (2025-12-19) E | 80.77% | 9.00% | 1.15x |
| FSLY | 5.0 | 0.46 | 6.76 | 149 (2026-01-16) E | 80.69% | 9.20% | 1.13x |