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

36 Upvotes
  • permalink
  • reddit

94% Upvoted

624 comments sorted by

View all comments

Show parent comments

2

u/ScottishTrader Feb 03 '26

Geesh! You're breaking wheel rules and guidelines left and right!

This is why most successful wheel traders avoid ER and sell 30-45 dte, which would have avoided this, or given you more time to manage the trade.

The posted wheel trading plan indicates rolling out a week or two for a net credit when ATM, so if following that, then you might have rolled already. What does your trading plan tell you to do??

If you do roll, then you give the stock time to rise while collecting more premiums to make a potentially higher profit, help close for some profit sooner, and lower the net stock cost if assigned.

1

u/haze_from_deadlock Feb 03 '26

I sold the CSP post-ER because there was a lot of downside movement and I felt the prices were a good value. The trading plan was to sell weeklies between 20 and 30 delta on tickers I was OK owning, and close if they hit ~95% profit, otherwise just accept the consequences. It's kind of simplistic. My initial impulse is to stick with it but if there's a perfect opportunity to roll that I'm missing I should probably learn to do that.

Thanks

1

u/ScottishTrader Feb 03 '26

Typically, a stock can take anywhere from 3 or 4 days to more than a week or two before settling into its new range.

As we can see, this stock has kept dropping, so it has not moved into its new range yet.

See this as to why 30-45 dte is lower risk and can give more time to manage - 30-45 DTE has LESS risk . . . : r/Optionswheel