Recommendation: HV
Current Price: $39.28
Total Wheels: 20
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 |
|---|---|---|---|---|---|---|---|
| LMND | 37.0 | 0.95 | 39.28 | 14 (2026-11-27) | 70.87% | 2.57% | 1.38x |
| LMND | 35.0 | 2.0 | 39.28 | 49 (2027-01-15) | 71.97% | 5.71% | 1.23x |
| LMND | 35.0 | 3.5 | 39.28 | 94 (2027-03-19) | 69.32% | 10.00% | 1.20x |
| LMND | 30.0 | 1.8 | 39.28 | 94 (2027-03-19) | 81.88% | 6.00% | 1.14x |
| LMND | 30.0 | 0.75 | 39.28 | 49 (2027-01-15) | 87.36% | 2.50% | 1.12x |
| LMND | 34.5 | 0.06 | 39.28 | 4 (2026-11-13) | 95.64% | 0.17% | 1.09x |
| LMND | 25.0 | 0.05 | 39.28 | 9 (2026-11-20) | 98.45% | 0.20% | 1.06x |
| LMND | 25.0 | 0.1 | 39.28 | 29 (2026-12-18) | 96.75% | 0.40% | 1.03x |
| LMND | 15.0 | 0.06 | 39.28 | 49 (2027-01-15) | 99.17% | 0.40% | 1.02x |
| LMND | 20.0 | 0.05 | 39.28 | 49 (2027-01-15) | 98.94% | 0.25% | 1.01x |