Recommendation: ST
Current Price: $6.55
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 | 5.5 | 0.03 | 6.55 | 5 (2026-10-02) | 92.36% | 0.55% | 1.29x |
| WEN | 6.0 | 0.03 | 6.55 | 5 (2026-10-02) | 89.20% | 0.50% | 1.25x |
| WEN | 2.0 | 0.05 | 6.55 | 40 (2026-11-20) | 97.73% | 2.50% | 1.16x |
| WEN | 6.0 | 0.05 | 6.55 | 15 (2026-10-16) | 84.45% | 0.83% | 1.13x |
| WEN | 6.0 | 0.6 | 6.55 | 170 (2027-05-21) | 67.00% | 10.00% | 1.10x |
| WEN | 3.0 | 0.04 | 6.55 | 320 (2027-12-17) | 97.12% | 1.33% | 1.01x |