Recommendation: NO
Current Price: $2.24
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 | 0.03 | 2.24 | 4 (2026-02-06) | 82.44% | 1.50% | 1.86x |
| DDD | 1.5 | 0.04 | 2.24 | 14 (2026-02-20) | 90.60% | 2.67% | 1.54x |