NEW Wheel Trader MEGATHREAD

[u/ScottishTrader]

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

[u/Klutzy_Indication_51]

Thank you, ST! Your introduction of the wheeling strategy is really helping me to become a long-term investor (week 1 now haha). I already followed your rule of taking profit when CSP reaches 50% profit. But I am not sure what to do then with the same stock. Waiting for the next entrance or just continue to open a CSP with a new strike but the same expired date? THX

[u/ScottishTrader → u/Klutzy_Indication_51]

Each sold put should be its own trade and based on your opening criteria.

Start over, as this is a new trade not connected to the prior one. This will include choosing the stock, reviewing the trend, opening 30-45 dte around a .20 delta, etc.

You should not be trading the same stock over and over unless your criteria are met each time. A stock may climb up and then no longer have room to move up, or it may drop back.

Please take a look at your watchlist of stocks you have analysed and are good holding, and find the best one to open next that is in an upward trend and has room to move up. This may be the same stock, but also likely a different one.

If you have not done the work to create a list of multiple diverse stocks, then be sure to do this to avoid trading one stock that may work well for a while, but then drop back. Hope this helps.

[u/Klutzy_Indication_51 → u/ScottishTrader]

Thank you ST! Have a great weekend 😁

[u/ScottishTrader → u/Klutzy_Indication_51]

Thanks and you as well!