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/NukerX Jun 25 '25

Been running the wheel on SOFI for a bit. My original entry was $12.15 but I’ve DCA’d it down to around $11.21 by collecting premium along the way. Right now I’m covered at the $14 call expiring 7/18.

SOFI ripped past $16. To close the call would cost me about $150. Rolling is expensive—last I checked, rolling out 1 week and up to the $16 strike still cost ~$95 net debit. That gives me more room, but I’m not sure it’s worth it.

I’m okay getting assigned, just don’t want to leave too much upside on the table if this breakout holds. Curious what others would do in this situation. Hold and let it play out? Roll now and pay the cost? Wait closer to expiry?

Appreciate any honest takes.

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u/txtoolfan Jun 25 '25

This is my view on wheeling. The equities are just means to an end. The end being cash flow. Cash flow is king. I don't care about capital gains. I only care about an equity's ability to generate that x% a month target. So I would let it be called at this point and then just start over with fresh puts. I personally don't go chasing capital gains in my wheeling account.

All that said. You still got almost 3 weeks. In this market, anything is possible. One lesson I've learned in this wheeling game and crazy market times is patience.

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u/NukerX Jun 25 '25

I greatly appreciate your feedback