Recommendation: ST
Current Price: $5.01
Total Wheels: 9
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 |
|---|---|---|---|---|---|---|---|
| NOK | 5.0 | 0.05 | 5.01 | 4 (2025-05-09) | 53.50% | 1.00% | 1.31x |
| NOK | 5.0 | 0.09 | 5.01 | 9 (2025-05-16) | 52.80% | 1.80% | 1.30x |
| NOK | 5.0 | 0.11 | 5.01 | 14 (2025-05-23) | 52.80% | 2.20% | 1.23x |
| NOK | 4.5 | 0.02 | 5.01 | 9 (2025-05-16) | 90.25% | 0.44% | 1.12x |
| NOK | 4.5 | 0.11 | 5.01 | 54 (2025-07-18) E | 77.90% | 2.44% | 1.09x |
| NOK | 4.0 | 0.04 | 5.01 | 54 (2025-07-18) E | 91.10% | 1.00% | 1.04x |
| NOK | 2.5 | 0.01 | 5.01 | 54 (2025-07-18) E | 98.27% | 0.40% | 1.02x |
| NOK | 3.0 | 0.01 | 5.01 | 54 (2025-07-18) E | 98.81% | 0.33% | 1.02x |
| NOK | 1.0 | 0.01 | 5.01 | 184 (2026-01-16) E | 99.32% | 1.00% | 1.01x |
| NOK | 2.0 | 0.01 | 5.01 | 184 (2026-01-16) E | 98.93% | 0.50% | 1.01x |