Recommendation: NO
Current Price: $3.52
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 | 3.5 | 0.25 | 3.52 | 15 (2026-10-16) | 55.01% | 7.14% | 1.91x |
| DDD | 3.0 | 0.25 | 3.52 | 40 (2026-11-20) | 73.42% | 8.33% | 1.45x |
| DDD | 3.5 | 0.55 | 3.52 | 60 (2026-12-18) | 58.71% | 15.71% | 1.45x |
| DDD | 2.5 | 0.3 | 3.52 | 105 (2027-02-19) | 81.10% | 12.00% | 1.25x |
| DDD | 2.5 | 0.1 | 3.52 | 40 (2026-11-20) | 85.00% | 4.00% | 1.23x |
| DDD | 3.0 | 1.1 | 3.52 | 345 (2028-01-21) | 75.52% | 36.67% | 1.20x |