Recommendation: ST
Current Price: $31.45
Total Wheels: 17
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 |
|---|---|---|---|---|---|---|---|
| GEO | 31.0 | 1.45 | 31.45 | 28 (2026-09-18) | 57.15% | 4.68% | 1.27x |
| GEO | 23.0 | 0.05 | 31.45 | 8 (2026-08-21) | 97.45% | 0.22% | 1.07x |
| GEO | 25.0 | 0.05 | 31.45 | 8 (2026-08-21) | 96.92% | 0.20% | 1.06x |
| GEO | 5.0 | 0.15 | 31.45 | 378 (2028-01-21) | 99.01% | 3.00% | 1.02x |