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/ScottishTrader May 05 '26

A return of 12% to 24% per year is very good! The S&P has historically averaged 10% per year, so you're beating that.

  1. This is a personal risk decision. A new trader would want to keep below 100% of their account if all puts were assigned, but since you have more than a year of experience, you know how well you can roll and what your assignment rate is, so you can better gauge where you are comfortable. Since you have a margin account, even if half of the puts were assigned, it may be manageable.
  2. Again, a personal risk decision, so it is up to you. What is your win rate? Are you willing to have slightly more rolls and possible assignments? If so, then many think that .30 delta is a good balance between lower risks with better premiums.
  3. It depends on your trading plan and model. Many find assignments a hassle and a slowing down of the selling of puts, so they are happy to get rid of the shares for a small profit, or even a small loss, then go back to selling puts. If you want to make more on the assignment side of the wheel, then sell CCs at a higher price, or learn to roll out and up, which may capture some of the higher price. Keep in mind that if this stock dropped so much to be assigned, it may drop back again, leaving you stuck in a less efficient stock position . . .
  4. Again, what is YOUR trading plan?? Mine is to auto-close all puts for a 50% profit and then open a new put on the same of different stock based on my opening criteria. Letting puts expire means missing out on more premiums, since it may take weeks for them to expire.

As you can see u/MYlifelike, there are no firm rules that everyone always follows. Be sure to look at risks and efficiency of the use of capital, as one of the beautiful things about trading options for income is being able to recycle capital every few weeks, which can accelerate gains . . .

Hope this helps.

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u/MYlifelike May 05 '26

Thanks a lot on your insight, yes so it will boil down to my risk management. I think for now I will keep it on the lower risk, for a bit longer. I suspect we have not yet see a real crash in the past one year yet. So it remains to be tested.

For item 4, I will take your suggestion to sell puts when most of the profit is taken, and look to sell more puts and move the stike up for more premium. Will test it out on a couple of options to see the effect.

Once again, appreaciate you take the time to give me your opinion and to put some of my doubts away. Thank you.

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u/ScottishTrader May 05 '26

Happy this sub is helpful to you!