Recommendation: HV
Current Price: $3.17
Total Wheels: 9
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 |
|---|---|---|---|---|---|---|---|
| CRON | 3.0 | 0.31 | 3.17 | 112 (2027-01-15) | 63.37% | 10.33% | 1.15x |
| CRON | 2.5 | 0.1 | 3.17 | 112 (2027-01-15) | 80.72% | 4.00% | 1.07x |
| CRON | 2.0 | 0.05 | 3.17 | 112 (2027-01-15) | 92.57% | 2.50% | 1.05x |