Recommendation: ST
Current Price: $1.16
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 | 0.05 | 1.16 | 14 (2026-02-20) | 75.11% | 5.00% | 1.94x |
| GPRO | 1.0 | 0.11 | 1.16 | 54 (2026-04-17) | 71.45% | 11.00% | 1.42x |
| GPRO | 1.0 | 0.3 | 1.16 | 249 (2027-01-15) | 74.75% | 30.00% | 1.23x |