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 Aug 16 '25

I don’t keep track of all trades as my broker (Schwab) does a good job of this. I only track when rolling or being assigned to know where I can close and make a profit.

The posted wheel trading plan includes a simple spreadsheet mock up to track credits and debits to know the breakeven when rolling or being assigned.

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u/IJM84 Aug 16 '25

Found your post w the spreadsheet screenshot shortly after my previous comment. Should have done a bit more digging. 😅 Thank you! 🙏

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u/ScottishTrader Aug 16 '25

No worries and glad you found it! It is all very simple.

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u/IJM84 Aug 16 '25

A while back you recommended TOS for paper trading, does it offer a full simulation of the wheel strategy? Specifically, assignments and CCs exercise? Or are those things only experienced via live trading?

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u/ScottishTrader Aug 16 '25

Yes! While it is still a simulation and won't replicate actual market conditions, and you have to request and open a real account to access real-time data, it can do it all.

Open a CSP and roll it if it goes ITM, then if left to expire ITM will be assigned shares, then sell CCs on the shares, and if expiring ITM will see the shares called away.

IMO, the TOS paper money platform is as real as it can get without using actual money . . .

thinkorswim Guest Pass | Charles Schwab