Recommendation: NO
Current Price: $46.32
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 | 42.5 | 1.29 | 46.32 | 49 (2027-01-15) | 73.52% | 3.04% | 1.12x |
| LUV | 42.5 | 3.65 | 46.32 | 158 (2027-06-17) | 67.28% | 8.59% | 1.09x |
| LUV | 37.5 | 0.23 | 46.32 | 29 (2026-12-18) | 93.01% | 0.61% | 1.05x |
| LUV | 42.0 | 0.04 | 46.32 | 4 (2026-11-13) | 95.91% | 0.10% | 1.05x |
| LUV | 42.5 | 0.04 | 46.32 | 4 (2026-11-13) | 95.65% | 0.09% | 1.05x |
| LUV | 35.0 | 0.11 | 46.32 | 29 (2026-12-18) | 96.50% | 0.31% | 1.03x |
| LUV | 22.5 | 0.23 | 46.32 | 158 (2027-06-17) | 97.36% | 1.02% | 1.02x |
| LUV | 27.5 | 0.08 | 46.32 | 49 (2027-01-15) | 98.35% | 0.29% | 1.01x |
| LUV | 30.0 | 0.05 | 46.32 | 29 (2026-12-18) | 98.55% | 0.17% | 1.01x |
| LUV | 27.5 | 0.03 | 46.32 | 29 (2026-12-18) | 99.12% | 0.11% | 1.01x |
| LUV | 25.0 | 0.04 | 46.32 | 49 (2027-01-15) | 99.20% | 0.16% | 1.01x |