Wheel Module 3 — Executing with BigDipperOptions

Learn · Wheel · Step 4 of 5 · Learn home · Prev: Module 2 · Next: Module 4 Companion UI doc: Wheel Page Guide (screenshots + filter examples)
Est. time: ~45–60 min

BigDipperOptions narrows choices—it does not place trades. Chart prices are delayed—confirm live prices at your broker. Delayed Data Disclaimer.

New terms (Module 3)

Term	Plain meaning
ROC	Return on capital—premium vs cash tied up (how it’s calculated)
Assignment risk	Platform estimate of how likely you end up owning shares
Pareto frontier	Dots with the best trade-off between return and risk—none strictly worse than another on both axes
Dominated	A dot worse than another on both return and risk—easy reject
Score	One decimal combining IV, open interest (OI), gamma, and more (scale)
GEX	Dealer hedging context—can dampen or amplify moves (GEX focus)

Your job in this module

Pass Module 2 on the stock
Use the Wheel page to compare puts and reject most of them
Run the checklist below
Place at most one trade at your broker (or zero)

1. Wheel page orientation

Treat the Wheel page as a research cockpit:

Candidates after your filters
Visual comparison of return vs assignment risk
Structure overlays (score, GEX, walls) in the side panel
Shortlist → one order at your broker (off-platform)

Wheel page overview with scatter chart and candidate tables

Unfamiliar control? Pause and find it on screen before continuing—Wheel Page Guide has screenshots.

2. ROC vs assignment-risk scatter

Each dot is a candidate contract (strike + expiry) that passed basic filters.

Axis	Read as	Wheel question
ROC	Premium efficiency vs cash tied up	“Is the credit worth the capital parked?”
Assignment risk	Higher chance you end in shares	“How often am I asking for Phase B?”

Skill: do not maximize ROC blindly. High ROC + high assignment risk on a name you barely want to own is a Module 2 fail—even if the dot looks attractive.

Up = more return on your cash
Right = more assignment risk
Pink / dominated = reject
Green frontier = compare these only

Dot interaction: hover = tooltip · click = Options Chain Report side panel to reject symbols. See scatter interaction GIF.

3. The Pareto frontier

Candidate A dominates B if A is better on ROC and no worse on assignment risk (or better on risk and no worse on ROC)—so B is strictly worse on the trade-off you care about. The Pareto frontier is the set of non-dominated candidates—the efficient edge of the cloud.

Points inside the cloud are often dominated → easy rejects
Points on the frontier deserve comparison—not automatic entry

Platform role: surface frontier candidates so you spend attention on trade-offs, not dominated noise.

4. Score — what it is and how to read it

Score highlights where market focus and participation are intense—it is not whether a trade is “good.”

Higher score → more attention / positioning at that level
Use it to notice engagement, then apply Module 2 ownability and liquidity rules
Experimental and relative—see What is Score?

Do not translate score into “high probability of profit.” Confirm live IV at your broker before selling.

5. Dealer positioning / GEX

Dealer hedging can dampen (often with positive GEX) or amplify (negative GEX) moves. For wheel research:

Calmer dealer backdrop → short premium may be easier to manage (still not safe)
Stress / negative GEX → rich premium can be a warning, not a gift

Deeper context: GEX graph · side panel on dot click.

6. Walls and magnets

Structure	Research use
Put wall	Downside concentration—still must be a price you’d own
Call wall	Context for covered-call strikes after assignment
Magnets / pin risk	Price may gravitate toward large OI near expiry—manage DTE and strikes

Walls are not guarantees. They are structure labels for discrimination. Related: GEX weight distribution · Wheel — Covered calls.

7. Filters

Use filters to enforce Module 2 policy before you fall in love with a credit. Full recipes: Filtering the Wheel page.

Filter	Example intent
Symbol	Watchlist you already vetted for ownability
DTE (days to expiration)	Your default band (e.g. 21–45)
Cash	≤ your per-trade cap
Assignment risk	≤ 25%
Period / Annualized ROC	Minimum efficiency worth your time
Premium	Floor so spreads do not eat the credit
Score	Tie-breaker only—e.g. `< 2` for lighter names

Example session:

Select symbols…   →  (your Module 2 list)
DTE               →  21 – 45
Cash              →  ≤ your cap
Assignment risk   →  ≤ 25%
Period ROC        →  ≥ 1.0%
Premium           →  ≥ 150

Zero results? Valid outcome—do not loosen risk caps just to force a trade.

8. End-to-end workflow

Step	Action
1	Select symbols… — Module 2 watchlist
2	Filter on scatter — stack from guide above
3	Scatter — show Frontier; hover; click → side panel; reject bad symbols
4	CSP table — Spread %, OI, cash, delta
5	Checklist (below) → broker for live quotes
6	Reject until at most one remains
7	Log entry fields for the Module 4 journal

9. Pre-trade checklist (printable)

Name I’d hold? Willing to own through a serious drawdown at this strike
Liquid enough? OI / spread acceptable vs credit
Event policy OK? Earnings / binary not ignored
ROC / risk on frontier? Not a dominated interior point
Score used correctly? Focus only—not a buy signal
GEX / regime acceptable? Not ignoring stress because premium is rich
Size within cap? Per-ticker and portfolio limits
Live broker confirm? Prices, margin, order details verified

10. Worked example — compare 3, reject 2

Pick three dots from your filtered scatter—A, B, C.

Check	A	B	C
Module 2 pass?
Liquidity OK?
On / near frontier?
Dominated by another?
IV tension OK?
Decision	Keep / Reject	Keep / Reject	Keep / Reject

Target: one keep or zero. Write two reject reasons, e.g.:

“Reject B—dominated; worse risk for less ROC.”
“Reject C—famous name, but I won’t hold through this event regime.”

Checkpoint

I can explain dominated vs frontier in one minute
I rejected ≥2 candidates in one live session
I used the Wheel Page Guide beside the app
Ready for Module 4 paper capstone

Next: Module 4 — Managing the lifecycle

​New terms (Module 3)

​Your job in this module

​1. Wheel page orientation

​2. ROC vs assignment-risk scatter

​3. The Pareto frontier

​4. Score — what it is and how to read it

​5. Dealer positioning / GEX

​6. Walls and magnets

​7. Filters

​8. End-to-end workflow

​9. Pre-trade checklist (printable)

​10. Worked example — compare 3, reject 2

​Checkpoint

New terms (Module 3)

Your job in this module

1. Wheel page orientation

2. ROC vs assignment-risk scatter

3. The Pareto frontier

4. Score — what it is and how to read it

5. Dealer positioning / GEX

6. Walls and magnets

7. Filters

8. End-to-end workflow

9. Pre-trade checklist (printable)

10. Worked example — compare 3, reject 2

Checkpoint