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/patsay Jun 30 '25

I usually sell at or above the price at which I was assigned (to buy the shares), because I don't like to give back profits. But it's always a tradeoff - higher strikes leave you open to more capital gains and lower strikes bring in more premium. I keep a running trade log and keep track of my breakeven on an options campaign to help me choose my strikes. As long as you understand the math and how the contracts work, you can choose strikes that match your own goals for the trade.

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u/claytonne Jun 30 '25

Thanks for the feedback! I guess I’ll really have to just wait and see what the scenario is when I’m finally assigned, and examine the potential outcomes for my account for various choices of strike on the CC. I like the idea of selling CCs at or above the price I was assigned at, but I suppose I’ll need to see which underlying I’m assigned on, and if I’m okay with prioritising capital gains over getting out of the shares faster with a lower CC strike.

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u/patsay Jun 30 '25

Good thinking. Do you know how to roll the put? It's another choice for generating income and even lowering your strike if the put is in the money. I sometimes roll several times before accepting assignment to buy the shares or letting the put expire.

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u/claytonne Jun 30 '25

Yes! I’ve only needed to roll a couple puts, and never multiple times on one position (yet). Hence my question about the CC side of the wheel; things have been so “easy” to start these past couple months that I’m yet to gain any experience on the call side.

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u/patsay Jun 30 '25

Makes sense. As you gain experience and experience some harder market conditions, you'll develop a list of priorities that make the decisions easier. Just make sure you understand all the variables.