Recommendation: ST
Current Price: $8.02
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 | 8.0 | 0.5 | 8.02 | 30 (2026-03-20) | 53.97% | 6.25% | 1.32x |
| WEN | 8.0 | 1.25 | 8.02 | 245 (2027-01-15) | 58.96% | 15.62% | 1.09x |
| WEN | 5.0 | 0.26 | 8.02 | 245 (2027-01-15) | 88.99% | 5.20% | 1.05x |
| WEN | 5.0 | 0.05 | 8.02 | 70 (2026-05-15) | 95.49% | 1.00% | 1.03x |