Recommendation: NO
Current Price: $9.41
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 | 7.5 | 0.05 | 9.41 | 15 (2026-07-17) | 93.46% | 0.67% | 1.11x |
| KODK | 2.5 | 0.05 | 9.41 | 145 (2027-01-15) | 98.49% | 2.00% | 1.03x |