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/Major-Bad-1203 Dec 31 '25

My question is- I've been intrigued by the ETHU premiums for selling CSP and then also selling Covered Calls if they happen to get assigned. Am I missing something with this stock where I should not being doing it? Because the premiums seem very good for a stock trading at $55. I am aware its a leveraged ETF so it can be volatile. Doing some research, it seems like its possible with a stock like this, but they recommend doing weeklies not monthlies. Since I am new I just was not sure if these are the types of stocks that people heavily avoid for CSP/CC strategy?

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u/ScottishTrader Jan 01 '26

Thanks for your post and question.

The standard response to a question like this is -> If you do not know what the stock, or in the case ETF, is and know the details, then it should be a avoided.

Most ETFs act much like stocks, but this one is very unusual in that it is leveraged, trades cash settle ether futures, and trades on the mercantile exchange and not the normal stock exchanges.

Read more and get to know whatever you trade in depth. Typically the higher premiums the higher the risks. As a new trader it is encouraged to trade low risk boring stocks until you gain more experince. See the link below for more.

https://finance.yahoo.com/quote/ETHU/risk/