Recommendation: HV
Current Price: $10.89
Total Wheels: 4
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 |
|---|---|---|---|---|---|---|---|
| FVRR | 5.0 | 2.2 | 10.89 | 105 (2026-11-20) | 90.39% | 44.00% | 2.23x |
| FVRR | 3.0 | 0.07 | 10.89 | 105 (2026-11-20) | 98.17% | 2.33% | 1.06x |