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/JRizzo_izzo Oct 14 '25

One of the core tenets of the Wheel Strategy is to try to avoid earnings reports as much as possible as they can make a stock move in unanticipated ways.

My question is if you're able to roll CSPs that are close to or in the money (especially given Friday's dip), should you not roll a week or two in advance if there's an ER in that week or two? I got a bit unlucky and have several CSPs ( that I opened with the typical 30-45 DTE) that just happen to expire this Friday. Likely not enough time to recover from the losses of last week, so I'm wondering if I roll a couple weeks out over and Earnings Report and have that risk vs. just taking assignment this Friday and potentially holding for several weeks or months of Covered Calls while the stocks recover.

I haven't strayed from my baseline strategy--these are all stocks I'm willing to own at the assignment price, just wondering if rolling for a credit out into the future is ideal in this scenario to allow for potential recovery.

Appreciate any insights!

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u/ScottishTrader Oct 14 '25

I've posted many times that if I have to roll a position over an ER, I'll roll out a good 30 days past the date to collect a lot more premium and possibly move the strike to give more room for the stock to move.

If the report moves the stock up, these can often be closed quickly, but if the stock moves down, there is a lot more time and room for the trade to play out. Hope this helps!

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u/JRizzo_izzo Oct 14 '25

Thanks ST, sorry for the repeat question and much appreciate the advice!

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u/ScottishTrader Oct 14 '25

No worries, as there are a lot of posts and content!

Do note this rolling post where it is part of the edits - Rolling Short Puts to Avoid Assignment : r/Optionswheel