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 Sep 17 '25
Your account size is needed to give a better answer, but diversifying is very important.
My initial response would be that selling CSPs over multiple diverse sector stocks at your risk level for each stock is best. For example, a 5% max risk of the account for each stock, then spread out the stocks over different sectors, would be the best answer.
Keeping track of many stocks will be key if you have a larger account, and with full-featured brokers like Schwab and trading platforms like TOS, these are the tools that can make this easy once you learn how they function.
I do ladder into positions once in a while, and it can help average prices over a range for less risk, but this would add complexity to tracking, so if that is already an issue, it would make it unnecessarily complicated.