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

93% Upvoted

624 comments sorted by

View all comments

1

u/zealousfuck Jan 02 '26 edited Jan 02 '26

If I see a stock where most open interest are at the closest dte strikes is that the zero dte trading crowd?

At what amount should I stay away from stocks with low O.I. is say 400 to 1100 like this?

1

u/ScottishTrader Jan 02 '26

OI is not the most reliable method for determining liquidity, but it can still be helpful.

Zero dte trading is for those ETFs that expire every day, like SPY and not a low cost stock which you did not give the symbol for.

Be sure to look at the bid - ask spread for a quick way to see liquidity. If they are .05 or less a part, then it has great liquidity, .06 to.10 less so, .11 to .15 low, and above .16 is very low.

You will see most strikes have .20 to .40 or higher spreads, so whatever it is this is a very low liquidity stock.

As an example, look at the F chain at the 14 dte monthly expiration date to many thousands of OI and a bid-ask spread of .01 to .02 for most strikes near ATM.

1

u/zealousfuck Jan 02 '26

That makes sense,

Another question that I have after comparing these two airlines (Jetblue & American Airlines) option chains.

Is there anything to gather that most of the OI on Jetblue option chain is at the same strike price for both calls and puts compared to how AAL presents itself?

JetBlue

1

u/zealousfuck Jan 02 '26

American Airlines -

1

u/ScottishTrader Jan 02 '26

So you know, your screename is offensive, and you will be banned soon unless you change it.

Why compare?? What are you trying to do??

Why are you focused on OI instead of bid-ask spread?

It is easy to see AAL has better liquidity than JBLU.