Recommendation: ST
Current Price: $12.52
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 | 12.0 | 0.13 | 12.52 | 9 (2025-05-16) | 74.73% | 1.08% | 1.25x |
| WEN | 12.0 | 0.5 | 12.52 | 34 (2025-06-20) | 64.60% | 4.17% | 1.22x |
| WEN | 11.0 | 0.16 | 12.52 | 34 (2025-06-20) | 83.71% | 1.45% | 1.09x |
| WEN | 10.0 | 0.55 | 12.52 | 184 (2026-01-16) E | 80.27% | 5.50% | 1.06x |
| WEN | 8.0 | 0.25 | 12.52 | 184 (2026-01-16) E | 90.91% | 3.12% | 1.04x |