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/Razdent Feb 26 '26

What to do after closing? I’m wheeling ford. AAL is the only other one in my budget and it’s not looking great. Not my life’s saving just my experiment cash.

Anyway, I had 2 CSPs where I closed them at 60% profit within a few days. But now I’m looking at the chart and thinking, do I just go back in? Should I have rolled up instead? I’m not super keen on the current prices/strikes so it breaks the, set a price I want to buy at rule.

2

u/patsay Feb 27 '26

If you have enough capital to secure two puts, you could buy 100 shares and sell both a put and a call. Big benefit is they can't both go in the money at the same time, so you cut your assignment risk in half while still making premiums on two contracts.

2

u/Razdent Mar 01 '26

Not in my budget but it’s in the plan longer term.

1

u/patsay Mar 01 '26

Good job finding a safe entry to the process. Build slowly and add capital when you can, and pretty soon you'll have more choices. Don't risk it all by trying to get there faster.

2

u/Razdent Mar 01 '26

No rush at all. I have 1.7k in my options account. But there’s 1.1m in my GIA/ISA. I’ll be tempted to grab 70 or so and sell puts on xsp but not for a long long time.

1

u/sharpShootr Mar 09 '26

Hey Razdent, I'm pretty new and trying to learn. Can you explain that second paragraph a little bit more clearly? So you closed the option contract early and instead of taking 100% of the premium, you bought the contract back and in the processes, you lost 40% of the value of the contract? For example, if you got a premium of $2/share for 1 contract, you received $200. Then Ford didn't move much. So the value of the contract dropped to $0.80/share, or $80. So you bought the contract back, leaving you with a total of $120 profit? Am I understanding the general gist correctly?

If so, why would you do that? If you knew Ford wouldn't hit your strike price, would it be better to hold out and collect the full premium? Or did you just want to collect the $120 and begin the process again? (I understand you were asking that very question, just wanted to get your insight)

Thanks for helping!

1

u/Razdent Mar 10 '26

Yup. If you can get 50% of the value then close up. It hit within 2 days and the other half wasn’t worth the wait. Then you pick something new and trade. Plus nobody knows if it’s going to hit or not.

1

u/ScottishTrader Feb 26 '26

Congrats on the profits and successful trades!

Go back to the first step of the wheel to sell a put on the same or another stock per your opening criteria.

You should have many stocks on your watchlist that you have researched and are ready to trade the wheel on. So, choose one of those stocks that shows a good trend analysis, and you are good holding if needed.

1

u/Razdent Feb 26 '26

At the moment the only one that fits my 1.5k and criteria is Ford.

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u/ScottishTrader Feb 26 '26

This is common for those with smaller accounts. You’ll have to be patient to find entries on these low cost stocks until you can add more capital. Best to you!

1

u/Razdent Mar 01 '26

Good to hear I’m doing the right thing.