Recommendation: NO
Current Price: $16.14
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 | 16.14 | 49 (2027-01-15) | 78.14% | 16.67% | 1.88x |
| ICLN | 16.0 | 0.1 | 16.14 | 4 (2026-11-13) | 61.26% | 0.63% | 1.21x |
| ICLN | 13.0 | 0.05 | 16.14 | 9 (2026-11-20) | 94.93% | 0.38% | 1.11x |
| ICLN | 14.0 | 0.66 | 16.14 | 158 (2027-06-17) | 75.94% | 4.71% | 1.06x |