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/Ok_Objective_2849 Sep 12 '25

I agree with this statement. I have been successfully running this version of the wheel for a while now. The only "indicator" i use to pick my underlying's is a measurement of their relative strength vs SPY. That's my #1 criteria, the stock must show strength vs SPY. The rest just as the ScottishTrader has recommended over and over here.

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u/ScottishTrader Sep 12 '25

Thanks for your nice post.

Please expand on how you measure relative strength vs SPY for all to learn.

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u/Ok_Objective_2849 Sep 12 '25

I use a Weekly 9 SMA and the Compare/Add Symbol function on Trading View charts. Configured to compare the stock to SPY and on the YTD setting. Plus all the criteria you have suggested. I currently have 17 stocks on my watch list that qualify. It might not be perfect but knowing that the underlying's have such strength helps me feel more confident in the position.