Recommendation: ST
Current Price: $0.65
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 |
|---|---|---|---|---|---|---|---|
| GPRO | 0.5 | 0.03 | 0.65 | 4 (2026-03-27) | 80.83% | 6.00% | 10.88x |
| GPRO | 0.5 | 0.05 | 0.65 | 19 (2026-04-17) | 78.27% | 10.00% | 2.72x |
| GPRO | 0.5 | 0.07 | 0.65 | 84 (2026-07-17) | 77.20% | 14.00% | 1.36x |
| GPRO | 0.5 | 0.12 | 0.65 | 214 (2027-01-15) | 77.10% | 24.00% | 1.22x |