Recommendation: ST
Current Price: $189.37
Total Wheels: 1
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 |
|---|---|---|---|---|---|---|---|
| MMM | 172.5 | 0.82 | 189.37 | 9 (2026-11-20) | 89.01% | 0.48% | 1.13x |
| MMM | 180.0 | 3.55 | 189.37 | 49 (2027-01-15) | 71.55% | 1.97% | 1.07x |
| MMM | 180.0 | 7.05 | 189.37 | 94 (2027-03-19) | 66.42% | 3.92% | 1.07x |
| MMM | 175.0 | 6.7 | 189.37 | 114 (2027-04-16) | 70.93% | 3.83% | 1.06x |
| MMM | 170.0 | 0.18 | 189.37 | 4 (2026-11-13) | 96.22% | 0.11% | 1.05x |