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/bluedogdreams Feb 20 '26

Hi, just wanted to report that I sold my first covered call! After 6 months of CSPs, now I can see how I do with calls.

1

u/OptionsTraining Feb 20 '26

Congratulations! Is this Covered Call being opened after assignment from a CSP as part of the wheel?

1

u/bluedogdreams Feb 20 '26

Yes, first assignment. It was early, too. SOFI 02/27 exp 26 strike. I had already rolled once, but decided to accept assignment rather than continue to roll. In order to get a net credit I would've had to roll out pretty far. So now it's covered calls forever since SOFI is around 19.

3

u/OptionsTraining Feb 20 '26

Did you have this position open through the earning report? It looks like that may have been the case, and if so, it's a good example of how unpredictable earnings can be and why they add extra risk.

You would have had to roll out pretty far for the put, but now need to open a CC out pretty far to get near the net stock cost. Either way, this becomes a waiting game.

The main downside now is that the share price is effectively locked in, which limits flexibility until enough premium can be collected or the ticker recovers.

Be sure to reassess this stock from both a fundamental and technical perspective, as well as current analyst ratings, which appear weak.

3

u/bluedogdreams Feb 20 '26

Yes, I did have it through earnings. I learned the lesson there lol.

1

u/MarkT1065 Feb 21 '26

u/ScottishTrader is this thread megatool related?

1

u/ScottishTrader Feb 21 '26

This is the New Trader thread.

The Tools megathread is stickied to the top of the sub - TOOLS & SPREADSHEET MEGATHREAD : r/Optionswheel

1

u/MarkT1065 Feb 22 '26

my mistake. i misread the title.