Recommendation: HV
Current Price: $2.77
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 | 2.5 | 0.35 | 2.77 | 113 (2026-10-16) | 67.71% | 14.00% | 1.22x |
| CRON | 2.0 | 0.2 | 2.77 | 178 (2027-01-15) | 81.02% | 10.00% | 1.12x |