Recommendation: ST
Current Price: $1.29
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 | 1.0 | 0.03 | 1.29 | 15 (2026-10-16) | 85.02% | 3.00% | 1.53x |
| GPRO | 1.0 | 0.08 | 1.29 | 40 (2026-11-20) | 79.53% | 8.00% | 1.47x |
| GPRO | 0.5 | 0.03 | 1.29 | 80 (2027-01-15) | 95.20% | 6.00% | 1.19x |
| GPRO | 1.0 | 0.05 | 1.29 | 80 (2027-01-15) | 82.76% | 5.00% | 1.14x |
| GPRO | 0.5 | 0.03 | 1.29 | 345 (2028-01-21) | 94.95% | 6.00% | 1.04x |