Recommendation: NO
Current Price: $19.50
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 | 19.50 | 145 (2027-01-15) | 84.34% | 16.67% | 1.26x |
| ICLN | 17.0 | 0.75 | 19.50 | 105 (2026-11-20) | 75.94% | 4.41% | 1.08x |