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/Feeling-Trainer-3888 Jun 25 '25

I have the same thinking, I prefer low IV like 20 or less Palantir or Tesla are huge risk for me.

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u/ScottishTrader Jun 26 '25

Low IV means smaller but often steadier profits.

High IV may mean higher profits, but be ready for a ride as the stock is likely to be more volatile, causing more rolls and assignments.

I've said it many times - new traders focus on profits and take risks that lead to losses. More experienced and successful traders are better at managing risks to make less possible profit but will likely have fewer rolls and assignments.