Recommendation: HV
Current Price: $44.93
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 | 43.0 | 0.55 | 44.93 | 5 (2026-10-02) | 73.70% | 1.28% | 1.60x |
| LMND | 40.0 | 3.0 | 44.93 | 80 (2027-01-15) | 70.65% | 7.50% | 1.18x |
| LMND | 40.0 | 6.2 | 44.93 | 189 (2027-06-17) | 68.90% | 15.50% | 1.14x |
| LMND | 30.0 | 0.11 | 44.93 | 15 (2026-10-16) | 97.35% | 0.37% | 1.06x |