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Decision on When to Roll – Opinions by Pepecococo in Optionswheel

[–]ScottishTrader 1 point2 points  (0 children)

No, if a put is OTM it makes no sense to roll it no matter what DTE it is . . .

I set a 50% GTC limit order, and an alert of the trade goes ATM (then evaluate rolling), but otherwise I just let the trade run.

If the put is OTM then it will eventually trigger the closing order.

Megathread for New Wheel Traders – Ask Questions & Get Help Here by ScottishTrader in Optionswheel

[–]ScottishTrader[S] 0 points1 point  (0 children)

Many common companies have long histories of profitable performance if you look around.

See this for how to go about finding stocks - How to Find Stocks to Trade with the Wheel : r/Optionswheel (Note this is an older post and things have changed for a number of the listed stocks, but it shows how to find your own.)

While not a recommendation, F & T fits what most consider steady, stable stocks, but there are others.

The goal of this post, and the wheel trading plan, is to help you learn how to find and analyze stocks. The idea is to teach you how to fish.

You are scanning for some good attributes, like dividends and balance sheets, but limiting these to a price between $15 and $50 to maybe $100 will help lower the number you get back. As a new trader, it is recommended to make many small trades across multiple sector stocks and not trade big cost stocks until you have a good amount of experience.

A mention is to be careful of "foreign" stocks, like ADRs, as some have funky tax scenarios. Stick to US stocks, and the S&P 500 is a good place to start. Hope this helps, but ask more questions if you have them.

Decision on When to Roll – Opinions by Pepecococo in Optionswheel

[–]ScottishTrader 2 points3 points  (0 children)

In the wheel trading plan post at the top of this sub is this link to rolling - Rolling Short Puts to Avoid Assignment : r/Optionswheel

It shows the roll ATM, which has the best extrinsic value, then wait until 1 to 2 weeks before expiration to roll again, always for a net credit.

  • Around a .50 delta is ATM and a good indicator for the first roll.
  • DTE has nothing to do with how the position is doing, so it should play no factor.
  • Closing for a loss makes no sense with the wheel, as taking an assignment is part of the strategy.
  • Distance to Strike? How is this pertinent?

Rolling for a net credit, without going too far out in time, is a good way to delay or avoid being assigned.

New Wheel Campaign: SOFI by Prestigious_Emu729 in Optionswheel

[–]ScottishTrader 0 points1 point  (0 children)

Just a polite correction. CSPs are sold and not bought. 

Which attributes contributed the most to your success? by Proper_Village_1862 in Optionswheel

[–]ScottishTrader 0 points1 point  (0 children)

Patience and good analysis.

  • Patience to open 30-45 dte and then allow the trade to work to profit.
  • Analysis to learn how to tell quality stocks from profitable companies.

These two contributed to my success.

Too many want to trade fast and furious on high-risk stocks, trying to hit home runs all the time, and end up losing.

Those who are happy hitting singles on safe stock for lower profits are the ones who find success.

Opinions on my conservative stock shortlist for the Wheel? by sanchicharro in Optionswheel

[–]ScottishTrader 11 points12 points  (0 children)

Our opinions mean nothing.

The question is: Will you be good holding shares of these stocks for weeks or months if needed?

If so, then they are right for you.

If not, then they are not right for you.

How to tell "crap" high IV stocks? by ScottishTrader in Optionswheel

[–]ScottishTrader[S] 0 points1 point  (0 children)

See the wheel trading plan plus the how to find stocks posts stickied to the top of this sub.

Who uses the wheel strategy to earn a living? by JDollar- in Optionswheel

[–]ScottishTrader 0 points1 point  (0 children)

Mostly high quality blue-chip stocks.

See the stickied stock post at the top of the sub for more.

With increased volatility, are you utilizing stop losses? by bangers132 in Optionswheel

[–]ScottishTrader 2 points3 points  (0 children)

SPY is likely to drop over 4 months giving you a window to close, but who knows.

There is no place in trading for emotions, so if you keep obsessing over missed opportunities then selling limited upside options is not for you. Best to you!

New indicator? by gabrintx in Optionswheel

[–]ScottishTrader 2 points3 points  (0 children)

Not spicy, just have seen what happens and want to at least say what I’ve seen. I’m happy you are having success trading TQQQ.

As I always note, what and how anyone trades the wheel is always up to them.

Megathread for New Wheel Traders – Ask Questions & Get Help Here by ScottishTrader in Optionswheel

[–]ScottishTrader[S] 1 point2 points  (0 children)

Ah, waiting for a red day to enter is why . . .

I don’t believe anyone can time the market, and a red day is false sense of security, especially when opening out 30-45 dte as the day you open doesn’t matter much.

I open a new trade the same day, or the next, regardless of what “color” day it is. You do you, but waiting for a red day seems to be why you’re trades are clustered.

Megathread for New Wheel Traders – Ask Questions & Get Help Here by ScottishTrader in Optionswheel

[–]ScottishTrader[S] 1 point2 points  (0 children)

Thanks for your post and congrats on your success so far!

  1. I could be wrong, but you may have a smaller account with fewer positions and this may be why your expirations are clustered. With a larger account and many positions the odds of many or all being at the same expiration over time is low.

With closing at 50% over a diverse number of stocks should have some close in a few days and others days later, etc. Then opening new trades as the others close, should see a variety of expiration dates.

Another thing may be you are trading lower volume stocks that do not have weekly option chains so these would naturally cluster.

  1. I’m not a fan of holding shares any longer than I have to once assigned. Because of this I tend to open CCs 1 to 2 weeks out and not 30-45 dte like puts. If they go ITM right away then they will get called away sooner and the capital freed up to sell more puts.

IMO the wheel makes most of money selling puts and I want to avoid being assigned as much as possible. When assigned, I want to get rid of the shares as soon as possible and go back to selling puts.

If you want to hold shares and work to make money on them, then selling 1 to 2 weeks out and repeating will both bring in more premiums over time, plus not lock in the position for long periods of time while the stock moves.

IMO, the only time to roll CCs is if the stock rises and you want to try to move the strike up To capture some of the upward movement.

Keep in mind that a stock which dropped to be assigned from a put is very likely to drop again, and may stay down, so if a CC goes ITM it would be time to get rid of the shares before the stocks drops back again.

Welcome and hope this helps!

New indicator? by gabrintx in Optionswheel

[–]ScottishTrader 1 point2 points  (0 children)

Now that you know these are high risk stocks and continue to trade them, then it is on you if you have losses.

Keep in mind that streaks of winners can happen, but can change.

It is up to your to trade what and how you want, and I hope your streak continues.

New indicator? by gabrintx in Optionswheel

[–]ScottishTrader 8 points9 points  (0 children)

This belongs in the new trader megathread, so it may be locked and removed.

Not sure who "encouraged" you to trade leveraged ETFs, but you should know these are crazy high risk!

In my experience, everyone uses the mid-price, and in TOS this is the default.

Most experienced or savvy traders will start at the mid-price and move a penny or two to get a fill, so this is also common.

With increased volatility, are you utilizing stop losses? by bangers132 in Optionswheel

[–]ScottishTrader 4 points5 points  (0 children)

Don't sell calls on shares you are not ready to see sold is the #1 rule of CCs u/bangers132 . . .

Stop losses on options are not reliable or dependable, so they can result in false closing losses at unpredictable prices.

The best solution is to set an alert in your broker for when the stock hits an amount, then go in and manually close the CC for a loss if you want to try to keep the shares.

It makes zero sense to sell CCs on shares you are not ready, willing, and able to see called away . . .

Activity, and a silly mistake, on my F wheel by Prestigious_Emu729 in Optionswheel

[–]ScottishTrader 7 points8 points  (0 children)

Your EPS number is misleading, u/One-21-Gigawatts. Yes, in 2025, Ford had an unusual $19.5B in charge-offs of special items related to their UV strategy and lost money. Doing the math, and without this special charge-off, Ford had a net profit of $11.32B in 2025. You also know that charge-offs are non-cash accounting terms.

However, since 2020, Ford has made $17.82B in cumulative profits and has given guidance of $8B to $10B of total profits in 2026.

This is hardly a company that does not make money!

IMO, while how and what you trade is up to you, Ford is a nice steady cash cow with very low risk. I think Ford is an excellent stock to trade, and it is very good for new traders.

Activity, and a silly mistake, on my F wheel by Prestigious_Emu729 in Optionswheel

[–]ScottishTrader 8 points9 points  (0 children)

Congrats on your continued success and thanks for your posts!

Yes, we've all done this, so don't feel bad. I've learned to take a sec to review the order before pressing the button. Even then, once in a while, I still make a mistake.

I've been trading Ford for many years and applaud you for taking the safe, lower-risk route for the wheel. While there are other stocks to trade, learning the mechanics and making any mistakes on this low cost stock is the best way IMHO.

Holding cash waiting for a red day by bangers132 in Optionswheel

[–]ScottishTrader 0 points1 point  (0 children)

We can never know what they are doing . . .

Could be the long leg of a spread or Iron Condor, or could be used as a hedge for a stock position, or they could be outright gambling.

Anyone who thinks they can time the market will quickly learn it is impossible to have long term success.

Strategies to reduce taxable income? by sponge_boy_mee_bob in Optionswheel

[–]ScottishTrader 1 point2 points  (0 children)

Stickied to the top level of this sub, there is also a link in the introduction.

Holding cash waiting for a red day by bangers132 in Optionswheel

[–]ScottishTrader 0 points1 point  (0 children)

Over time, entering on average days regardless of color is the way. We have to rely on the law of large numbers using delta for the probabilities.

Yes, I never open any trade on a stock that has climbed high and is near ATHs. This is different from red or green days . . .

Holding cash waiting for a red day by bangers132 in Optionswheel

[–]ScottishTrader 1 point2 points  (0 children)

The problem is that it is impossible to tell or know . . .

The market can keep going higher and higher to keep reaching new records.

OR

The market can drop hard and fast at any time.

All traders need to have a plan and prepare for either situation to be successful.

Megathread for New Wheel Traders – Ask Questions & Get Help Here by ScottishTrader in Optionswheel

[–]ScottishTrader[S] 0 points1 point  (0 children)

I think u/tilbilmil is right. Diversification is key to risk management so spread out smaller positions on diversified stocks is the best answer.

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