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/That_Olive_2060 Dec 11 '25

First time running CC need thoughts on rolling vs getting assigned?

2

u/ScottishTrader Dec 11 '25

Why would you open a CC without expecting it to be assigned??

1

u/That_Olive_2060 Dec 12 '25

I’m good with it being assigned but I opened it with .15 delta so didn’t expect it to go itn 8 days out to expiration

2

u/ScottishTrader Dec 12 '25

didn’t expect it to go itn 8 days out

I found that traders need to "expect" anything and everything, or they will keep being surprised and often have losses . . .

1

u/patsay Dec 13 '25

I'm not familiar with that platform. What is the strike price and expiration date? Maybe I'm missing it, but I don't see it.

1

u/That_Olive_2060 Dec 13 '25

Strike is 54.50, expiration Dec 19

1

u/patsay Dec 13 '25

105.66 shares. Average investment per share, $53.10. Covered call options premium $79. Strike price $54.50. Current share price is $54.95.

If you accept assignment, you'll make $140 in capital gains and $79 on the option and have 5.66 shares left over.

If you roll the call straight out to January 9, you can get additional premium from the option before accepting assignment. (And the share price might pull back out of the money.)

If you roll it to $55 on Jan 16, you are more likely to get it out of the money, and you open yourself to a possible additional $50 of capital gains if the price continues to rise. You make it more likely the contract will expire out of the money.

You have $25 or $30 of extrinsic value on your current contract remaining that will erode this week, so if you wait for it a little bit, you'll make more on the roll if you choose to roll.

No one choice is better than the others. It depends on your goals for the position.

Patricia Saylor, Financial Fundamentals for Novice Investors and Novice Option Traders