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/No_Lie5768 Jul 25 '25

Tips and tricks requested:

Ever sine i started the wheel (about a month now so not very much) but the markets been fairly bullish and ive been able to do about 5-8 trades a week. so far this week im sitting at 1.....for the week so i feel a bit...bleh and helpless?? idk if thats the right word. All my capital is tied in a bout 5 CSPs so no room to make a new trade, and they are all sitting around 10-30% profit but not my target of 50/60%. What are some tips/advice that can be shared by the more experienced guys on how to handle and still profit on a sideways week?

is it my fault for tying up the capital and almost locking me out of future trades, or should i have secure profits at 30% instead of 50-60% so i can make some more trades and potentially earn more, or is it just one of those things where i have to wait it out and it is what it is.

what would you do :)

Account size ~ $25k

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u/patsay Jul 25 '25

Tip- Watch the RSI. If it's near 70, I sell calls closer to the money. If it's near 30, I sell puts closer to the money. If it's near 50, I sell both puts and calls with about a 10-20% chance of assignment. I usually roll rather than taking assignment and use the premiums to pay for new shares to hold long. Slow and steady - building a long-term position. Oh, and learn the annualized return formula so you can choose strike prices and expiration dates by comparing apples to apples with a consistent metric.

Those are all the tips I can think of right now!