Recommendation: ST
Current Price: $15.90
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 | 11.0 | 0.05 | 15.90 | 10 (2026-02-20) | 96.67% | 0.45% | 1.12x |
| GEO | 12.0 | 0.05 | 15.90 | 10 (2026-02-20) | 95.55% | 0.42% | 1.11x |