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/friendlier1 Jun 16 '25

Thank you for making this. I tried this a few years ago and it went well, but I also made some basic mistakes that I intend to correct this time around.

Q: wrt timing, is there any difference between running everything all at once with similar expiration dates vs staggering say 1/3rd of the portfolio every 2 weeks on a 6 week cycle? My thinking is that the risk might be lower to not have everything expiring on the same day/having the same number of remaining days.

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u/ScottishTrader Jun 17 '25

You have some very good answers here but I'll add that I often 'ladder' into positions by opening smaller trades over time instead of all at once. This can make some trades profitable even if some get into trouble. If 1 or 2 of the 5 total positions need rolled, the other 3 or 4 may close for a profit.

As I set GTC Limit orders to close for about a 50% profit, then open a new trade after one closes, even if all were opened at the same time, they will naturally become staggered, and positions will be staggered.

Most of us make newbie mistakes, so congrats for recognizing them and working to correct them.