You'll get lots of opinions, but I would give away Sheo's Wabbajack. It is easy to get, you can get it at level 2 and it is (in my opinion) only a novelty toy. If you use enchanted weapons at all, I recommend you hang on to Azura's Star. Beyond that, it can certainly depend on the type of character you are playing. Your only other three choices at level 8 are: Ring of Namira, Skull of Corruption or Sanguine Rose.
Hit the nail on the head there. Wabbajack is pretty much just a novelty. In my opinion the quest in order to obtain it is very fun as well. I don't think it involves combat either as far as I can remember.
However, if you do choose to turn over the Wabbajack, have a wee play around with it first. It has a fun effect and you may as well get
some use out of it. :tongue: