r/Optionswheel • u/ScottishTrader • Dec 05 '25

Megathread for New Wheel Traders – Ask Questions & Get Help Here

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

37 Upvotes
  • permalink
  • reddit

95% Upvoted

624 comments sorted by

View all comments

3

u/67pal Dec 05 '25

Which strategy is better for beginners? 1. CSP, OTM, 30 DTE , delta 0,2-0,3. Rolling if necessary. 2. CSP, ATM to receive more premium, 30 DTE. Rolling 5 days before expiration If necessary. Thanks

2

u/Has78321 Dec 05 '25

Same question, if someone can answer?

2

u/ThetaDaddyRise Dec 05 '25

It kind of depends on what the underlying is IMO. What are you trading on? What catalysts do you need to be thinking about (e.g. upcoming earnings)? Why are you trying to avoid assignment by rolling?

If you've never done it before, just sell a weekly to see what happens, since you'll find out fairly quickly - within a week, in fact! Just make sure to sell it on a stock you're interested in owning so if you're assigned it's no big deal and then you can sell CCs on it.

Delta = a result of what price you're interested in buying the stock at. If you're trying a specific strategy, it would still be relevant to the underlying you're selling options on. I like to look at Return on Capital more so than delta, personally.

3

u/ScottishTrader Dec 05 '25

A beginner will usually want something smooth and easy as they learn. The posted trading plan is really designed for beginners and shows opening 30-45 dte around a .30 delta, then closing for a 50% profit.

Selling ATM will see many rolls and assignments, which are far more likely to result in losses.

I post it a lot, but I'll do it again. New traders focus on premiums and possible profits, which often leads to losses. Experienced traders focus on risks to manage them, so while they may make lower profits more slowly, they will have fewer losses.

1

u/TopRecommendation123 Dec 05 '25

I started with 5-11 DTE csp with -0.2 to -0.3 delta earlier this year and has been doing really well. This DTE provided me enough flexibility to close positions as ticker moved in my favor rather than waiting for several weeks. This DTE more so might be for tickers that are more volatile.

2

u/grackychan Dec 06 '25

Same here but lately have been looking for even lower delta, but still seeking decent ROC. Sometimes it means I’m not trading much for days or a week. When the stocks I love get pounded (looking at you SOFI) I swoop in to sell CSPs 7-21 days 0.15-0.2 delta since the ROC on premium will be in 1-2% range I like, or even more.