Recommendation: NO
Current Price: $10.57
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 |
|---|---|---|---|---|---|---|---|
| BITO | 10.5 | 0.19 | 10.57 | 4 (2026-02-06) | 56.11% | 1.81% | 1.66x |
| BITO | 10.5 | 0.33 | 10.57 | 9 (2026-02-13) | 54.90% | 3.14% | 1.61x |
| BITO | 10.0 | 0.47 | 10.57 | 34 (2026-03-20) | 65.85% | 4.70% | 1.25x |