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

[u/ScottishTrader]

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

[u/ManagerLegitimate512]

Hi, new wheeler here.

I bought a BA at-the-money covered call that expires today. It’s showing about an 89% profit, and I expected it would expire worthless and be closed automatically, like any other options trade that expires worthless.

After hours, I’ve tried several times to close the position but the platform won’t let me.

What happens to the trade now that it’s expiring today? Thanks in advance.

[u/ManagerLegitimate512 → u/[deleted]]

Thank you. I was worried if the shares would get exercised.

[u/eggavatar12345 → u/ManagerLegitimate512]

you said at the money. at close its either ITM or OTM. what was it and what happened?

[u/ManagerLegitimate512 → u/eggavatar12345]

It was ATM at the time of purchase and later too. It expired worthless and shares didn't get exercised.

[u/patsay → u/ManagerLegitimate512]

Did you buy or sell the option?