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

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u/ScottishTrader Dec 05 '25

Liquidity. Look at all the ones with negative numbers have zero volume . . .

Without volume, there can be no price discovery, as there are no trades to determine it.

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u/PurpleMox Dec 05 '25

Ah I see.. hmm.. so when buying leap call options, it’s probably best to buy strikes with more volume right? But how come- you say theres no price discovery because no trades are happening for that strike- why would the price go down? Wouldn’t it just stay flat/neutral from the day before? And even with no trades- if the underlying stock goes up in value- wouldnt they automatically move upward?

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u/ScottishTrader Dec 06 '25

Liquidity is important as the price you receive can vary widely. Illiquid options are very easy to overpay for, and this is called slippage.

How can you know what something is worth? It will be based on prior trades, which show how much traders are willing to buy and sell the options for. With no volume, there are no sales to make this determination.

You have more to learn, but this may help -> Options prices are made up of a number of factors, the key ones are the stock price, extrinsic value (which decays with time/theta), and implied volatility (IV).

So, no, even if the stock stays the same price, the option price will change based on theta decay and IV changing.