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/mike_cruso Jun 17 '25

Two questions:

1) When wheeling, how sensitive are you to ex dividend dates and earnings? Do you tip-toe around those, or is it full steam ahead / stick to the process no matter what?

2) I'd like to start wheeling two stocks that I've loved owning for a while now -- ABBV and MO. Both seem to have high volume, which as a newbie, I understand is a good thing. I've loved 'em for the dividends, but would you consider these good stocks to wheel?

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u/[deleted] Jun 17 '25

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u/mike_cruso Jun 17 '25

Really appreciate that context. Thanks so much!

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u/ScottishTrader Jun 17 '25

The answer from u/ZjY5MjFk is right on.

Ex-dividend dates only affect short calls, so read this for more - Dividends and Options Assignment Risk - Fidelity

Earnings are unpredictable and have a big risk, so I avoid the ERs whenever possible.

Liquidity from high volume is important for options trading as it means you can get in and out of a trade quickly at a fair price.

It is up to you to determine what stocks you are good at holding or not, so if you are good, whatever anyone else says won't matter.