Recommendation: NO
Current Price: $13.62
Total Wheels: 9
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 |
|---|---|---|---|---|---|---|---|
| FIGS | 12.5 | 1.6 | 13.62 | 80 (2027-01-15) | 66.27% | 12.80% | 1.29x |
| FIGS | 12.5 | 0.25 | 13.62 | 15 (2026-10-16) | 76.86% | 2.00% | 1.29x |
| FIGS | 5.0 | 0.05 | 13.62 | 15 (2026-10-16) | 98.35% | 1.00% | 1.18x |
| FIGS | 12.5 | 1.85 | 13.62 | 145 (2027-04-16) | 66.48% | 14.80% | 1.18x |
| FIGS | 10.0 | 0.1 | 13.62 | 15 (2026-10-16) | 93.40% | 1.00% | 1.17x |