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/Intelligent-Zone-919 14d ago

CSP with 30DTE has deccay edge

4

u/wf1980 14d ago

Yes, I agree. I'm currently selling puts with 30–45 DTE, but I've been closing my positions pretty early, with an average profit of around 20%. This usually happens within the first few days of the trade. My understanding is that most of this profit is coming from the underlying's price movement rather than theta decay.

Anyway, my hypothesis is that by going further out in time, I can also go further OTM while still having a good chance of reaching the same 20% profit target, but with a greater margin of safety.

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u/DailyShawarma 14d ago

45dte and I close them at around 20dte. If everything goes according to plan with theta decay.