Recommendation: ST
Current Price: $0.84
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 | 0.05 | 0.84 | 9 (2026-11-20) | 87.25% | 10.00% | 10.40x |
| GPRO | 0.5 | 0.05 | 0.84 | 49 (2027-01-15) | 87.42% | 10.00% | 1.54x |
| GPRO | 0.5 | 0.05 | 0.84 | 114 (2027-04-16) | 87.07% | 10.00% | 1.20x |
| GPRO | 0.5 | 0.05 | 0.84 | 314 (2028-01-21) | 87.29% | 10.00% | 1.07x |