Recommendation: NO
Current Price: $8.47
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 | 8.0 | 0.27 | 8.47 | 9 (2026-11-20) | 68.08% | 3.38% | 1.89x |
| KODK | 2.5 | 0.05 | 8.47 | 49 (2027-01-15) | 98.31% | 2.00% | 1.11x |