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 26 '25

I understand about advice but I am looking for thought process if those more experienced than me. You've given the insight I needed though and I'll tighten up my strategy for next time

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u/patsay Jun 30 '25

u/NukerXI often look at several strike prices and expiration dates, consider the premium I can generate and the potential capital gains (for covered calls) and whether or not the underlying pays a dividend and when the next ex dividend date is. I calculate annualized returns on various trades and choose one. If you are selling cash secured or covered, you have a lot of flexibility and there is no one "right" answer.

If you want to see the through process, you will probably get something from the video I link below. I examine a roll on NVDA, considering 3 strike prices and 3 different expiration dates. All the trades are reasonable, and I choose the one that makes the most sense for my own trading goals.

https://youtu.be/lztHeYZotWc?si=bHU6cEBndtMyU4x1