Recommendation: NO
Current Price: $6.55
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 | 0.06 | 6.55 | 9 (2025-05-16) E | 91.41% | 1.20% | 1.36x |
| KODK | 5.0 | 0.03 | 6.55 | 34 (2025-06-20) E | 94.57% | 0.60% | 1.04x |