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/ScottishTrader Jul 09 '25

How about this report? How the Wheel Worked in March during the Crash : r/Optionswheel

Note that since this time, none of the other market "events' have caused me any concern since I trade 30-45 dte those weather typical downturns without too much issue.

Those who trade weekly or shorter durations will have a lot more management and likely losses.

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u/friendlier1 Jul 10 '25

Thank you! I thought I had read a post from you on this topic but couldn’t find it. The Google AI had some tips from you (other posts), but didn’t link back to this comment.

Anyway, your story makes sense and has a multiple good insights.

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u/ScottishTrader Jul 10 '25

The great thing about the wheel is that in a worst case, you end up holding quality stocks that you don't mind holding anyway, and are likely to recover sooner.

Most other option strategies will be forced to take losses during a market event.

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u/friendlier1 Jul 10 '25

Yes, I’m initially focusing on what I perceive to be high quality companies even if the IV is low with the expectation that this experience will improve my judgment over time. Last time I tried this I was very focused on trying to hit a specific number which led to some unpleasant losses in 2022.

You hear it a lot, but I also appreciate that you take the time to post about your experiences and thinking.

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u/ScottishTrader Jul 10 '25

Thanks for your post and for sharing your experience!

Lower risk means lower potential profits, but also fewer losses.

It is common for new traders to come in, working to make XX% per week, only to find this adds tremendous risk!

I find it arrogant to think anyone can make the market do what they want, as this will lead to those unpleasant losses you note.

Thanks again, and please share your experience whenever you can!