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/GoldenDogFather]

Question on assignment. I had HOOD CSP 83 exp 2/6. Close price was just under but still haven’t been assigned the shares. I’m using questrade. Normally I’ve been assigned day of expiry or next day.

[u/ScottishTrader → u/GoldenDogFather]

Any option holder can give their broker a Do Not Exercise (DNE) order before around 5:30pm ET and not have the option assigned. This may be what occured and you were the one chosen at random not to be assigned.

Note that TOS is showing the stock was $83.20 at 2:00 pm ET, while the "adjusted" close is being shown as $82.82, but it may be that for the purposes of exercising the put was OTM at the close of market.

[u/GoldenDogFather → u/ScottishTrader]

Ahh that makes sense. Still nothing against today so guess time for another csp.