Recommendation: NO
Current Price: $54.26
Total Wheels: 11
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 |
|---|---|---|---|---|---|---|---|
| LUV | 47.0 | 0.26 | 54.26 | 5 (2026-02-13) | 91.19% | 0.55% | 1.29x |
| LUV | 53.0 | 0.8 | 54.26 | 10 (2026-02-20) | 65.54% | 1.51% | 1.28x |
| LUV | 52.0 | 0.3 | 54.26 | 5 (2026-02-13) | 80.89% | 0.58% | 1.26x |
| LUV | 53.0 | 1.42 | 54.26 | 20 (2026-03-06) | 61.92% | 2.68% | 1.23x |
| LUV | 52.0 | 1.09 | 54.26 | 20 (2026-03-06) | 69.03% | 2.10% | 1.20x |
| LUV | 50.0 | 1.04 | 54.26 | 30 (2026-03-20) | 76.08% | 2.08% | 1.14x |
| LUV | 50.0 | 0.62 | 54.26 | 20 (2026-03-06) | 80.63% | 1.24% | 1.13x |
| LUV | 42.0 | 0.45 | 54.26 | 20 (2026-03-06) | 91.67% | 1.07% | 1.13x |
| LUV | 47.5 | 0.6 | 54.26 | 30 (2026-03-20) | 85.62% | 1.26% | 1.09x |
| LUV | 47.5 | 1.98 | 54.26 | 94 (2026-06-18) | 76.00% | 4.17% | 1.09x |
| LUV | 45.0 | 1.51 | 54.26 | 94 (2026-06-18) | 81.53% | 3.36% | 1.08x |
| LUV | 47.5 | 4.3 | 54.26 | 245 (2027-01-15) | 71.43% | 9.05% | 1.07x |
| LUV | 46.0 | 0.24 | 54.26 | 20 (2026-03-06) | 92.34% | 0.52% | 1.06x |
| LUV | 49.0 | 0.06 | 54.26 | 5 (2026-02-13) | 95.40% | 0.12% | 1.06x |
| LUV | 45.0 | 3.45 | 54.26 | 245 (2027-01-15) | 76.06% | 7.67% | 1.06x |
| LUV | 32.5 | 0.05 | 54.26 | 30 (2026-03-20) | 98.93% | 0.15% | 1.01x |