Recommendation: NO
Current Price: $17.23
Total Wheels: 1
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 |
|---|---|---|---|---|---|---|---|
| ICLN | 12.0 | 2.0 | 17.23 | 80 (2027-01-15) | 80.60% | 16.67% | 1.49x |
| ICLN | 14.0 | 0.1 | 17.23 | 15 (2026-10-16) | 91.81% | 0.71% | 1.12x |
| ICLN | 15.0 | 0.42 | 17.23 | 80 (2027-01-15) | 79.65% | 2.80% | 1.07x |
| ICLN | 13.0 | 0.05 | 17.23 | 20 (2026-10-23) | 96.02% | 0.38% | 1.05x |