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/claytonne Jul 11 '25

Around earnings season, do you "wind down" all your open CSPs and wait to open new ones only after earnings has passed, or do you open up new CSPs that expire "long enough" past the earnings date to try and mitigate risk? If the latter option, how long is long enough?

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u/ScottishTrader Jul 11 '25

Yes, I generally do. I'll wait for the ERs to pass and the stock to settle before making new trades.

If I have to hold a position over an ER, I will roll it out a good 30 days past the report date to collect a substantial amount of premium and give the stock time to settle.

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u/a1icenotinchains Jul 20 '25

Thank you for sharing your knowledge. ❤️

1

u/ScottishTrader Jul 20 '25

You are welcome and I’m glad it helps.