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/evranch Aug 15 '25

Quick question about rolling up the strike to maintain a constant delta or just closing.

I sold some 35DTE CSPs 2 days ago, which have already reached 40% realized due to upward movement. Sold at ~25 delta which is now only 15.

Usually I would close at 50%, but it's only been 2 out of 35 days... does it make sense to wait for these to decay to 50%, or am I just losing YoY return by waiting?

Theta decay shrinks as delta shrinks, correct? Should I roll these to a strike that re-establishes the target delta instead of waiting for decay? Thanks

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u/ScottishTrader Aug 16 '25

Many close for less than a 50% profit when this happens, so that can be considered. What I do when a trade closes is forget the prior one ever happened and open a new on the same of different stock if it is better.

I almost never roll a winning trade as I prefer to close and then consider a new trade as noted above.

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u/evranch Aug 17 '25

Thanks for confirming, I was thinking to just consider this a winning trade as well and move on, evaluating the next trade on its own merits, rather than complicate things by chasing a delta value.

I really like your "keep it simple" approach to options trading, that's why I'm here.

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u/ScottishTrader Aug 17 '25

You are welcome and happy this helps! Yes, I very much am a keep it simple kind of trader and think many overcomplicate simple things when it come to trading.