Recommendation: ST
Current Price: $3.16
Total Wheels: 16
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 |
|---|---|---|---|---|---|---|---|
| BB | 3.0 | 0.06 | 3.16 | 4 (2026-04-02) | 71.89% | 2.00% | 2.05x |
| BB | 3.0 | 0.16 | 3.16 | 15 (2026-04-17) | 64.45% | 5.33% | 1.76x |
| BB | 3.0 | 0.21 | 3.16 | 35 (2026-05-15) | 63.50% | 7.00% | 1.37x |
| BB | 3.0 | 0.2 | 3.16 | 59 (2026-06-18) | 63.26% | 6.67% | 1.19x |
| BB | 3.0 | 0.51 | 3.16 | 210 (2027-01-15) | 64.15% | 17.00% | 1.13x |
| BB | 2.0 | 0.11 | 3.16 | 210 (2027-01-15) | 88.33% | 5.50% | 1.06x |