Recommendation: NO
Current Price: $3.62
Total Wheels: 5
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 |
|---|---|---|---|---|---|---|---|
| DDD | 2.0 | 0.05 | 3.62 | 7 (2026-08-21) | 93.74% | 2.50% | 2.30x |
| DDD | 3.0 | 0.05 | 3.62 | 7 (2026-08-21) | 86.74% | 1.67% | 1.68x |
| DDD | 3.5 | 0.6 | 3.62 | 72 (2026-11-20) | 62.41% | 17.14% | 1.43x |
| DDD | 2.5 | 0.08 | 3.62 | 27 (2026-09-18) | 89.13% | 3.20% | 1.30x |
| DDD | 2.0 | 0.05 | 3.62 | 27 (2026-09-18) | 94.00% | 2.50% | 1.24x |
| DDD | 1.5 | 0.07 | 3.62 | 72 (2026-11-20) | 94.73% | 4.67% | 1.16x |