Recommendation: HV
Current Price: $3.41
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 | 0.05 | 3.41 | 49 (2027-01-15) | 90.02% | 2.00% | 1.10x |
| CRON | 3.0 | 0.05 | 3.41 | 49 (2027-01-15) | 83.55% | 1.67% | 1.07x |
| CRON | 2.5 | 0.05 | 3.41 | 114 (2027-04-16) | 90.07% | 2.00% | 1.04x |