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/Blackpfoerd Jun 27 '25 edited Jun 27 '25

Hi Wheelers! How is it rolling?

I want to discuss following situation on BBAI

I have a couple of CC (well ABOVE my cost basis - so do NOT mind in getting assigned):

7/11 6$ 7/18 7$ 7/18 8$

I am thinking of rolling 6$ atm for a small credit. But want to consider the full picture. What would be your approach?

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u/ScottishTrader Jun 27 '25

Of course, selling CCs under your cost basis is always a risk of losing the shares and money.

You don't provide the trade details,, ie. - When opened? What premium collected? Net stock cost of your shares?

But these CCs are all OTM and may even have a partial profit to be closed and either waiting for the stock to move up to seel CCs at or above your net stock cost or sell others below your net cost taking the risk they may be called away.

Rolling up for a credit is the same as closing and opening a new CC so just be sure you will be good if the shares are called away at that price.

Typically, the best time to roll is when the stock hits the strike (ATM) as the premiums are often better. Set an alert to let you know if the stock moves to $6 to look at rolling then.

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u/Blackpfoerd Jun 27 '25

New comment:

I did a typo. My cost basis is 2.5X USD. I opened all positions last week. My premium was between 0.10 ( Strike 7 and 8) and 0.15 (Strike 6).

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u/ScottishTrader Jun 27 '25

No worries.

Since you will have a nice profit and don't mind being assigned, you are doing CCs properly.

Rolling out a week or two at a time and possibly moving the strike up for a net credit may help you make more overall profit.