Recommendation: NO
Current Price: $14.42
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 | 5.0 | 0.05 | 14.42 | 48 (2026-10-16) | 98.59% | 1.00% | 1.05x |
| FIGS | 5.0 | 0.05 | 14.42 | 113 (2027-01-15) | 98.47% | 1.00% | 1.02x |
| FIGS | 7.5 | 0.02 | 14.42 | 48 (2026-10-16) | 98.80% | 0.27% | 1.01x |