Recommendation: ST
Current Price: $3.39
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 | 0.23 | 3.39 | 98 (2026-06-18) | 71.05% | 7.67% | 1.15x |
| BB | 3.0 | 0.07 | 3.39 | 34 (2026-03-20) | 79.43% | 2.33% | 1.15x |
| BB | 3.0 | 0.43 | 3.39 | 249 (2027-01-15) | 69.44% | 14.33% | 1.10x |
| BB | 2.5 | 0.22 | 3.39 | 249 (2027-01-15) | 81.20% | 8.80% | 1.07x |