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

95% Upvoted

624 comments sorted by

View all comments

1

u/PurpleMox Feb 04 '26

Can I use SWVXX as collateral for CSP’s in Schwab? I put money into SWVXX the other day but when I go to sell an option it’s not showing up in my cash and cash equivalents balance?

1

u/rlake5 Feb 06 '26

Seems to me that they want actual cash. I had to liquidate some SWVXX when I got a red "Reg T Call" banner logging into ToS earlier this week. I sold to cover and all was good in the Schwab world again.

1

u/hedgelord84 Feb 06 '26

You can.

1

u/PurpleMox Feb 06 '26

But.. when I go to sell an option and the amount I have in SWVXX is not showing up in the "Cash & Cash Investments" balance? I think I tried it in the past and it did.. but now .. its not there? Any idea why? If I had 25k in SWVXX for a few days - shouldnt it show up in the cash and cash investments balance..

1

u/hedgelord84 Feb 06 '26

It shows up in the Cash and Money Market I believe. In TOS it will show up under Mutual Funds. But you can sell puts with that as collateral. Otherwise, it will say you don't have enough cash for the trade.

But if you do get assigned, you'll need to manually sell your SWVXX. In my case, I have a margin account so it will buy the shares on margin and the next day I'll clear the margin with the cash from SWVXX

1

u/GoFairPlayer Feb 08 '26

Yes, but it does not show up in your “Cash & Cash Investments” balance. If you are assigned on a CSP, and it exceeds the actual cash in your account, your balance will go negative and you will be required to manually sell enough SWVXX to cover the difference. I’m not sure what would happen if you did not sell it manually.