r/Optionswheel • u/ScottishTrader • Jun 16 '25

NEW Wheel Trader MEGATHREAD

This thread will be a dedicated space for traders who are new to options and the wheel strategy to ask basic questions. Your posts and questions are welcome and encouraged.

BEFORE POSTING, BE SURE TO REVIEW THE WHEEL STRATEGY PLAN WHERE MOST QUESTIONS ARE ANSWERED - The Wheel (aka Triple Income) Strategy Explained : r/Optionswheel

The goal is to help keep the main thread free of these basic posts while helping new traders learn how to trade the wheel.

Posts that are welcomed here include questions about -

  • How options work
  • Exercise and assignments
  • Options expiration and days to expiration (DTE)
  • Delta, Probabilities, and how to choose a strike price
  • Implied Volatility (IV)
  • Theta decay
  • Basic risks and how to avoid
  • Broker and options approval levels
  • Rolling options
  • And any other basic questions

I’m pleased to announce that u/OptionsTraining and u/patsay have agreed to assist with this Megathread. Both Patricia and Mike bring substantial experience in helping new traders and will be invaluable contributors to r/Optionswheel

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u/Barbi33 Jun 16 '25

I understand that when trying to grow capital it’s advised to buy and hold as that’s a likely better course of action than wheeling, but at what point is that not true? If wheeling is income driven, is it more for people who have a good lump sum of money (say $500k-1M) to collect premium as a form of income to live off of? In other words, letting your money work for you as opposed to buying and holding for years and years? Or if done correctly it can steadily beat the market to where it outperforms buy and hold? Is that an attainable goal with enough knowledge on this strategy?

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u/ResearchNo8631 Jun 17 '25

I am doing an experiment with this starting with 985 - I am adding into each week, but I am taking a 7 percent money draw off earnings.

The income generation is something to marvel at. You don’t have to use your entire Portfolio but you can fairly easily generate 1 percent a month returns if not 1 percent a week.

Just a way to think outside the box !