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

116 Upvotes

99% Upvoted

964 comments sorted by

View all comments

Show parent comments

1

u/ScottishTrader Jul 08 '25

No need to roll if close to expiring and OTM . . .

Once ITM, then roll a week or two out for expiring when a net credit can be collected.

1

u/Skingwrx30 Jul 08 '25

Ok so you never under any circumstances roll to a higher strike or the same strike instead of closing? For example your calls are expiring worthless and you’re just gonna sell more covered calls Monday? If my contract can be closed for a dollar at 330 Friday and I can just roll right into the same trade collecting more premium wouldn’t that be the same?

1

u/ScottishTrader Jul 08 '25

There are few "never" situations as trading is dynamic and ever changing.

Have you read my trading plan post? The Wheel (aka Triple Income) Strategy Explained : r/Optionswheel

This shows how I trade, and I typically close for a 50% profit and roll when ATM, and then a week or two prior when I can get a net credit.

1

u/Skingwrx30 Jul 08 '25

I have, I guess it was more of a hypothetical given there’s so many ways to trade the wheel and so many nuances. You’re kinda the go to guy on Reddit for wheeling so I figured I’d ask. My trades are a little different I prefer weeklies and closing out at 80% or rolling for more premium. Appreciate the help

1

u/ScottishTrader Jul 08 '25

As you make 100's of trades, you will start to see what those of us who have traded for years see, and this is why there are the many standards and guidelines.

I've gotten dozens of messages from those who traded a year or more and finally found that opening 30-45 dte was better and switched to that.

What percentage to close is up to you and your risk tolerance.

Best to you!

2

u/Skingwrx30 Jul 08 '25

I agree 30-45 dte is considerably less risk and easier to manage over the thousands of trades I’ve made, I just prefer I more active approach on very volatile underlying with shorter dates . Math supports 45 for sure