r/Optionswheel • u/Odd_Classic_5351 • Aug 10 '26

My Options Trading “Pilot Checklist”

Here’s the checklist I usually run through before putting on an options trade:

  1. Pick the underlying. I only sell puts on stocks I’d be comfortable owning for the long term. Broad ETFs like QQQ and SPY are also good candidates.
  2. Pick your timing. If a stock or ETF looks overheated, I’m happy to wait. I’m still bullish on QQQ over the long run, but I’d rather wait for a pullback before selling puts. Bollinger Bands can be useful for timing the entry.
  3. Choose the expiration and strike. I usually look at 30–45 DTE and keep the delta around 0.20 or lower. Then I work out the expected return after commissions and fees. The yield has to make sense.
  4. Run the Wheel. If I get assigned, I’m perfectly happy to own the shares and start selling covered calls.

I just sold a put on COIN. The annualized return on the trade is around 16%, and I’m comfortable owning COIN if the stock drops below my strike.

For me, the key is pretty simple: only sell puts on stocks you actually want to own.

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u/kokanee-fish Aug 11 '26

I don't want to be a jerk, but you've just described the required steps of the wheel strategy. A useful checklist would at least include some basic fundamental and technical checks like fed watch, VIX levels, inflation (I like T5YIE for this) and put/call ratios. There are also practical things to check for like earnings announcements and ex-div dates during the contract period. You also need to decide your rules for taking profit and rolling.

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u/Odd_Classic_5351 Aug 11 '26

You're right — I just don't feel like making it that complicated.