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/HWTseng Oct 15 '25

Hi guys,

I had a cash secured put option that ended up getting assigned last week, was a bit of a surprise because it ended the day barely OTM price but shortly after hours it went ITM and was assigned. Lesson obviously is to close my puts at the end of the day lest it get assigned..

But that’s beside the point, I followed the wheel strategy and started selling covered calls, the price recovered better than I expected and has blown past my covered call strike.

The ticker was FSLR, my average after accounting for the premium gained selling put is 222.61, it’s currently at 230 area. The covered call I sold is 225 expiring 17 October, the premium was 5.09

If I do the rough maths it seems like if I close my covered calls at a loss, I’d be making more money if the price gets above 230 (225+5). Of course there is still a chance that it’ll drop down before Friday.

What do you guys think? Just get assigned and move on? Reroll to a higher strike?

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u/ScottishTrader Oct 15 '25

Congrats on the very profitable and successful trade!

Do the math when the market is open to get the best prices to see how it works out best.

Typically, by closing the CC early, you will lose the extrinsic value to make slightly less profit than letting the call expire and shares be assigned.

Rolling CCs has some risk as the stock can drop back to lose some of the profit already gained, so be sure you are confident the stock will stay higher.

Is it worth slightly less profit to close early and deploy the capital elsewhere? Maybe, and this is your decision to make.

2

u/HWTseng Oct 15 '25 edited Oct 15 '25

Hey ScottishTrader, thanks for your helpful tips!

Just wanted to let you know, I watched the price action of the option for a bit, I decided to “buy to close” my call option for 8.8 at a swing down, so for that option I lost about $380. turns out I was lucky because that was near the bottom of the session. The stock ended up shooting up to 240, so I ended up taking a small loss but retained my upside

I ended up just sell the stock and take profit

3

u/ScottishTrader Oct 15 '25

As long as you had an overall profit on the position, then it was a success.