Recommendation: HV
Current Price: $36.46
Total Wheels: 10
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 |
|---|---|---|---|---|---|---|---|
| MP | 36.0 | 1.66 | 36.46 | 14 (2026-11-27) | 56.57% | 4.61% | 1.59x |
| MP | 30.0 | 1.2 | 36.46 | 49 (2027-01-15) | 80.46% | 4.00% | 1.18x |
| MP | 32.0 | 0.04 | 36.46 | 4 (2026-11-13) | 96.49% | 0.13% | 1.06x |
| MP | 27.0 | 0.03 | 36.46 | 9 (2026-11-20) | 98.28% | 0.11% | 1.03x |