Recommendation: ST
Current Price: $7.78
Total Wheels: 1
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 |
|---|---|---|---|---|---|---|---|
| WEN | 7.0 | 0.07 | 7.78 | 9 (2026-02-13) | 84.48% | 1.00% | 1.27x |
| WEN | 7.5 | 0.04 | 7.78 | 4 (2026-02-06) | 79.95% | 0.53% | 1.24x |
| WEN | 7.0 | 0.03 | 7.78 | 4 (2026-02-06) | 90.89% | 0.43% | 1.22x |
| WEN | 5.0 | 0.05 | 7.78 | 74 (2026-05-15) | 95.31% | 1.00% | 1.03x |