Recommendation: NO
Current Price: $10.13
Total Wheels: 14
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 |
|---|---|---|---|---|---|---|---|
| XPEV | 9.0 | 0.41 | 10.13 | 49 (2027-01-15) | 73.89% | 4.56% | 1.19x |
| XPEV | 8.0 | 0.01 | 10.13 | 4 (2026-11-13) | 98.30% | 0.13% | 1.06x |
| XPEV | 5.0 | 0.03 | 10.13 | 49 (2027-01-15) | 98.16% | 0.60% | 1.03x |