Stock selection for the wheel based on option ROI

Below is my thought process for stock selection for CSP.

I. First step is to filter stocks – based on fundamental and technical analysis – that I am fine holding for a long time.

II. I analyze PUTs to sell that have a strike price about 5% under the current market price.

E.g., GOOG market price is now $317.01

5% less is about $300.00

III. I calculate annualized ROI (or ROC) like this:

premium / strike price x 365 / option's Days

Because I lock in the whole capital: strike price x 100. I do have margin, but I prefer to disregard it as I also have to keep extra cash on hand.

JAN 30 '26 GOOG (37 Days) @ strike $300.00 has a bid of 4.50

Giving an annualized ROI of 14.8%

Questions:

1. I see many stocks only have monthly options. And you'd choose DCE of 23 or 58 days. Do you also invest in this options? Do you pick 58 days?

2. Is 5% strike price under current market price appropriate? How about volatile vs steady stocks? How do you choose it?

3. 14.8% ROI is pretty low for the risk and a lot of stocks have an even lower ROI. I have found only one with about 20% ROI.

4. Am I calculating the ROI wrongly? It is under the assumption that I keep the CSP to expire, which I won't. Does the non-linear theta makes for a better ROI when you get rid of the CSP early?

5. Do you calculate ROI differently?

6. What are the ROI ranges you condider a acceptable?

Thank you and have a jolly Christmas!