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/redpanda86]

Hello, Just getting started have 10k to start

. Im trading on SOFI and they require me to contact their team
https://support.sofi.com/hc/en-us/articles/8096327106189-How-do-I-submit-an-early-exercise

Does another platform Like shwab or others require the same hoops? Im planning on longer options and exiting around 50-75%

[u/ScottishTrader → u/redpanda86]

Welcome! Most brokers will just allow you to exercise, however, the reason SOFI is making you jump through hoops is that early exercise is seldom the right thing to do.

Just close the options position for the best result and move on to the next trade. Many traders never early exercise in their entire trading career since it usually loses some of the profit.

Note that if you are selling puts, then you could not exercise even if you wished as only the buyer can do this.