To calculate the IRR at 100% cash-secured, I need to determine the cash outlay (the strike price × 100 shares, since each put is on 100 shares) and the option premium received, then compute the annualized return if the puts expire worthless.

Let me pull the key data:

Now, the IRR formula for a cash-secured put held to expiration (assuming worthless expiry):

ANET $90 P (Jun 17, 2027): - Days to expiry: Jul 21, 2026 → Jun 17, 2027 = 331 days - IRR = ($515.33 / $8,484.67) × (365 / 331) = 6.69% annualized

BKNG $150 P (Aug 21, 2026): - Days to expiry: Jul 21, 2026 → Aug 21, 2026 = 31 days - IRR = ($122.34 / $14,877.66) × (365 / 31) = 9.68% annualized

META $320 P (Dec 18, 2026): - Days to expiry: Jul 21, 2026 → Dec 18, 2026 = 150 days - IRR = ($131.34 / $31,868.66) × (365 / 150) = 1.00% annualized

Summary (Ranked by IRR)

Key takeaways: - BKNG offers the highest annualized return at nearly 10%, driven by its short 31-day duration — though the absolute premium is modest at $122. - ANET is the next best at ~6.7% annualized, with a solid $515 absolute return over nearly a year. Notably, this position is currently underwater (market value -$640 vs. cost basis -$515). - META is the weakest at just 1% annualized — $131 on $32K of tied-up cash over 5 months is thin compensation.

All three are OTM puts, meaning full cash-secured capital is at risk until expiry or close.

The blended IRR is simply the total premium received divided by the total cash outlay, annualized.

Total Premium: $515.33 + $122.34 + $131.34 = $769.01

Total Cash Secured: $9,000 + $15,000 + $32,000 = $56,000

But since each position has a different duration, a proper blended IRR requires weighting by time. Here's the calculation using dollar-days:

Weighted average days: 8,049,933 / 55,230.99 = 145.7 days

Blended IRR: ($769.01 / $55,230.99) × (365 / 145.7) = 3.49% annualized

So while BKNG alone screens at ~9.7% and ANET at ~6.7%, the heavy weight of META ($32K, 150 days, just 1%) drags the blended return down to ~3.5% — roughly equivalent to a high-yield savings account, but with equity downside risk.

Let me find the META put at the same $320 strike but roughly 1 year out. Let me look up the option chain for a longer-dated expiration.I need to find the META put at $320 strike expiring approximately 1 year from now (~Jul 2027). Let me look at the relevant expiry. The closest to 1 year out at the $320 strike from the chain is the Dec 17, 2027 expiry.

From the data, the META Dec 17, 2027 $320 put has a last price of $11.10 (mid). Let me now recalculate.

New META Put: Dec 17, 2027 $320 P

Using the last price of $11.10 (mid), and assuming you'd sell to open at roughly that level:

Comparison — Yes, IRR Improves, but Still Weak

The 1-year $320 put more than doubles the IRR from 1.0% to 2.6%, but it's still the worst-performing leg by a wide margin. The core problem is META's $320 strike is so far out of the money (META trades ~$655) that the premium per dollar of secured capital is tiny — $1,110 on $30,890 tied up for 1.4 years. The real drag is the huge cash requirement relative to the premium, not the duration.

If you replaced the current META put with the 1-year version, the new blended IRR would be:

Weighted avg days: ($8,485×331 + $14,878×31 + $30,890×514) / $54,252 = 384 days

New blended IRR: 3.06% (vs. 3.49% currently)

Bottom line: Selling the 1-year META $320 put improves META's standalone IRR from 1.0% → 2.6%, but the blended IRR actually drops slightly (3.49% → 3.06%) because the larger absolute premium is outweighed by the much longer duration and the enormous $32K capital drag. META at this strike simply doesn't generate enough premium to justify the cash allocation — you'd need to sell a strike closer to the money or consider a different underlying entirely.

Let me find the right strike. I'll use the Dec 17, 2027 expiry (514 days, closest to 1 year) and work backward from the IRR formula to find the needed premium, then match it to a strike.

For a 7-8% IRR target with $32,000 cash secured and 514 days:

Premium needed at 7% IRR: $32,000 × 7% × (514/365) = $3,155 Premium needed at 8% IRR: $32,000 × 8% × (514/365) = $3,606

So we need a put with mid-price around $31.50–$36.00. Let me scan the Dec 17, 2027 chain:

We need something around $31–36, but the lowest strike with meaningful liquidity is $500 at $51.70. That's already above our target range. Let me keep going lower:

Actually, looking more carefully at lower strikes in the Dec 17, 2027 chain:

The premiums are far above our $31–36 target. The issue is clear: a 7-8% IRR on $32,000 over 514 days requires only ~$3,155–$3,606 in premium, but the lowest strike with real bids on this expiry is $500 at ~$52 premium (which already gives ~10%+ IRR).

Let me flip the approach — what's the furthest OTM strike that still yields 7-8%?

Key Finding

For $32,000 cash-secured, the minimum premium for a 7% IRR over 514 days is ~$3,155.

Looking at the chain, even the deepest OTM strikes carry premiums well above that:

Wait — that doesn't seem right. Let me recalculate properly. The cash secured is strike × 100, not $32,000.

For a put at strike $X, cash secured = $X × 100. Premium = put price × 100. Net outlay = 100X − premium.

IRR formula: IRR = Premium / (100 × Strike − Premium) × (365 / 514)

We need to find the highest strike where IRR ≈ 7–8%.

At 7.5% target: Premium / (100S − Premium) = 7.5% × 514/365 = 0.1056 → Premium = 0.1056 × 100S / 1.1056 = 9.55 × S / 100

So the put price needs to be roughly 9.55% of the strike.

The lowest strike with good liquidity is $600, and its premium of $99.39 already yields ~13.3% — well above the 7-8% target.

Answer

There is no strike on the Dec 17, 2027 chain that gives a 7-8% IRR — they all yield much more. Even the furthest OTM strike ($600, which is ~8.4% below the current $655 price) delivers ~13.3% annualized.

The market is pricing in significant volatility/downside risk, so premiums are rich across the board.

If you want to stick to 7-8% IRR and maximize OTM distance, you'd need to go to a different underlying or sell fewer contracts at a closer strike to manage the total capital at risk. For example, selling the META Dec '27 $600 put gives ~13.3% IRR but requires $60,000 cash secured — strong return, but concentrated risk.

You're right — let me look further down the Dec 17, 2027 chain for lower strikes. Let me pull the full chain data I already have and scan the lower strikes properly.

From the Dec 17, 2027 data:

Now let me calculate IRR for each. For a strike S with premium P: Net outlay = 100S − 100P. IRR = (100P) / (100S − 100P) × (365/514).

Answer

The sweet spot for 7-8% IRR on the Dec 17, 2027 expiry is around the $480–$500 strike:

The $480 strike is your answer — furthest OTM (~27% below current price) while still hitting ~7.5% annualized. At $490 it's ~7.8%, at $500 it's ~8.2%. Below $470, the IRR drops below 7%.

However, note that the cash secured jumps from $32,000 (current $320 strike) to $48,000–$50,000 at these levels. The return improves dramatically because the market prices meaningful tail risk even this far out — but you're tying up significantly more capital.

Let me pull the Jun 17, 2027 expiry data I already have. That's 331 days from now (vs. 514 for Dec '27).

From the Jun 17, 2027 chain:

IRR formula for 331 days: IRR = Premium / (100S − Premium) × (365/331)

Target 7-8% IRR → Premium/(100S − Premium) = 7.5% × 331/365 = 0.0680 → Premium ≈ 6.37% of strike.

Jun 17, 2027 vs Dec 17, 2027 — Same 7-8% IRR Target

Key Takeaway

The Jun '27 expiry lets you go slightly further OTM (28.2% vs 26.7%) for the same ~7.5% yield, with marginally less capital tied up ($47K vs $48K). The trade-off is a shorter duration (331 vs 514 days), meaning you'd need to redeploy sooner.

If you want to maximize OTM distance while staying at 7-8%, the Jun '27 $470 strike at 7.8% IRR is the best fit — furthest from the money, shortest time commitment, and slightly less capital at risk than the Dec equivalent.

You're right — your current META put is Dec 18, 2026. Let me compare that with Jun 17, 2027 (331 days, within 1 year) at the same $320 strike and at the 7-8% IRR strikes.

Current (Dec 18, 2026) vs Proposed (Jun 17, 2027)

Doubles the IRR but still terrible.

Same Strike $320 — Verdict

Going from Dec '26 to Jun '27 at $320 improves IRR from 1.0% → 2.2%. Still not worth the capital.

Jun '27 at 7-8% IRR (furthest OTM)

Bottom line: You can't get 7-8% IRR with META at anything close to $320 within a 1-year window. The $320 strike is so deep OTM (~51%) that even stretching to 11 months only yields 2.2%. To hit 7-8%, you need to move up to roughly the $470 strike (Jun '27) — still 28% OTM, $47K secured, 7.8% annualized. That's the furthest OTM strike that hits your target within the 1-year constraint.

You're absolutely right. Let me get the Dec 18, 2026 chain data to find the furthest OTM strike that yields 7-8%.

From the Dec 18, 2026 chain (150 days):

IRR formula for 150 days: IRR = Premium / (100S − Premium) × (365/150)

Target 7.5%: Premium/(100S − Premium) = 7.5% × 150/365 = 0.0308 → Premium ≈ 2.99% of strike.

Final Answer: Furthest OTM for 7-8% IRR

The Jun '27 expiry is vastly superior. With Dec '26, you can only go 3.8% OTM ($630) before the IRR drops below 7% — meaning META only needs a ~4% drop in 5 months to put you underwater. Jun '27 lets you go 28% OTM ($470) for the same yield, with less capital tied up and much more breathing room. The time value in the shorter-dated option evaporates too quickly to support deep OTM strikes at your target return.

You're right — I was assuming the premium at deeper OTM strikes would be too low, but I should actually check them. Let me look at lower strikes in the Dec 18, 2026 chain.

From the Dec 18, 2026 data:

IRR = Premium / (100S − Premium) × (365/150)

Correct Final Answer

Both are roughly 27-28% OTM with nearly identical IRRs and cash requirements. The Dec '26 gives you a slightly higher annualized return (7.9% vs 7.8%) with half the duration — you get your capital back in 5 months instead of 11. But Jun '27 locks the rate for longer and pays 3x the absolute premium. Your call on duration preference, but they're remarkably similar on an annualized risk/reward basis.

Using the same chains and formula: IRR = Premium / (100S − Premium) × (365 / Days)

Dec 18, 2026 (150 days): Target 5% → Premium/(100S − Premium) = 5% × 150/365 = 0.02055 → Premium ≈ 2.01% of strike.

Jun 17, 2027 (331 days): Target 5% → Premium/(100S − Premium) = 5% × 331/365 = 0.04534 → Premium ≈ 4.34% of strike.

Dec 18, 2026

Jun 17, 2027

5% IRR — Furthest OTM

At 5%, Jun '27 edges ahead — lets you go 34.4% OTM vs 32.8% for Dec, with slightly less capital tied up and more than double the absolute premium. The longer-dated contract benefits more at lower yield targets because the time premium builds faster than decay eats it at deep OTM levels.