Recommendation: HV
Current Price: $4.85
Total Wheels: 19
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 |
|---|---|---|---|---|---|---|---|
| NIO | 4.5 | 0.02 | 4.85 | 4 (2026-07-02) | 88.08% | 0.44% | 1.22x |
| NIO | 4.5 | 0.66 | 4.85 | 145 (2027-01-15) | 65.55% | 14.67% | 1.17x |
| NIO | 4.0 | 0.1 | 4.85 | 40 (2026-08-21) | 85.08% | 2.50% | 1.14x |
| NIO | 4.0 | 0.52 | 4.85 | 190 (2027-03-19) | 73.95% | 13.00% | 1.13x |
| NIO | 4.0 | 0.01 | 4.85 | 4 (2026-07-02) | 95.92% | 0.25% | 1.13x |
| NIO | 4.0 | 0.03 | 4.85 | 20 (2026-07-24) | 91.83% | 0.75% | 1.09x |
| NIO | 3.0 | 0.15 | 4.85 | 145 (2027-01-15) | 89.41% | 5.00% | 1.08x |
| NIO | 0.5 | 0.02 | 4.85 | 145 (2027-01-15) | 99.41% | 4.00% | 1.07x |
| NIO | 3.5 | 0.01 | 4.85 | 20 (2026-07-24) | 96.98% | 0.29% | 1.04x |