Recommendation: NO
Current Price: $42.19
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 |
|---|---|---|---|---|---|---|---|
| HRB | 40.0 | 3.4 | 42.19 | 145 (2027-04-16) | 63.51% | 8.50% | 1.10x |
| HRB | 17.5 | 0.15 | 42.19 | 40 (2026-11-20) | 98.23% | 0.86% | 1.05x |