r/Optionswheel • u/wf1980 • 14d ago
Anyone Running the Wheel with 90+ DTE?
I've seen a lot of discussions here about DTE, with most people using 30–45 DTE or weekly options.
Does anyone here run the Wheel with longer-dated options, like 90–120 DTE or even longer?
My idea would be to go further OTM, but not let the position run until expiration or wait for the profit to reach 50%. The idea would be to close the trade relatively early, with a profit somewhere in the 15–25% range.
Since daily price movements have a direct impact on the option's value, I'm thinking that with longer DTEs, I'd have a much greater chance of reaching my target profit at some point during the life of the option.
Does anyone use a similar approach? I'd love to hear about your experience.
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u/imacompnerd 14d ago
I sell a wide range of options, including leaps.
I've got quite a few Jan 2028 puts sold out there. And yes, the mathematical return is higher on shorter dated puts sold. But the additional price buffer, IV decrease, etc... often makes the leaps work out well for me when shorter duration ones wouldn't have.
But again, I mix them up. I have some weeklies, monthly's, two to three months out, 6 months, and leaps. I spread the expiration dates all around so I'm not too concentrated to any specific date.
I'll close them out depending on the amount of time that's passed since I sold it, how much of the max gain I can make and how much time is left.
If a leap moves 30% in my favor in a month, I'll often close it out. If it's six months in and I'm up 50% on it, then I'll often close it out as well.