Recommendation: ST
Current Price: $31.22
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 | 26.0 | 0.65 | 31.22 | 40 (2026-11-20) | 83.38% | 2.50% | 1.14x |
| GEO | 27.0 | 3.9 | 31.22 | 345 (2028-01-21) | 71.16% | 14.44% | 1.07x |
| GEO | 18.0 | 1.6 | 31.22 | 345 (2028-01-21) | 88.31% | 8.89% | 1.06x |
| GEO | 5.0 | 0.15 | 31.22 | 345 (2028-01-21) | 99.02% | 3.00% | 1.02x |