Recommendation: NO
Current Price: $5.72
Total Wheels: 3
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 |
|---|---|---|---|---|---|---|---|
| KODK | 5.0 | 0.27 | 5.72 | 39 (2025-08-15) E | 74.18% | 5.40% | 1.29x |
| KODK | 5.0 | 0.09 | 5.72 | 19 (2025-07-18) | 82.74% | 1.80% | 1.22x |
| KODK | 5.0 | 0.6 | 5.72 | 149 (2026-01-16) E | 70.30% | 12.00% | 1.15x |