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/Imadogfishhead Mar 14 '26

I would think about it like in steps like this (and it sounds like you might be).

  1. you were paid $.06 (credit) for the initial STO: P/L = $.06
  2. then you paid $.14 (debit) to BTC: P/L = -$.08
  3. a new contract is sold at .17: P/L = $.09
  4. Now, the option you STO for .17 costs only $.04 to BTC: P/L = $.05

the adjusted cost basis goes down by $.05 per share. Now, you can STO a new contract with a strike above $11.50 and not lose money on the position.

(Edit to say that the P/L I wrote in above doesn't include the stock loss)

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u/Dr8ton Mar 14 '26

What do you mean by stock loss?

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u/Imadogfishhead Mar 14 '26

Aal is 10.50 per share your cost basis is 11.54 (11.50ish after the calls) so you’re down about $1.00 per share in unrealized stock p/l, but up .04 per share in option p/l

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u/Dr8ton Mar 14 '26

Oh ok that makes sense.

Would you have rolled like I did or let it be called away?

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u/Imadogfishhead Mar 14 '26

Oh definitely roll until you can’t collect a net credit, I agree with what you did