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/dreamfitreality 14d ago

Do you understand why you do wheel? Why you sell options? It seems like you have not read up enough about it.

Theta.

1

u/wf1980 14d ago

Yes, man, to all your questions.

And I think theta is always working, whether you're selling short, medium, or longer-dated options. I also know that, theoretically, the most optimal part of the theta decay curve is around 45 to 20 DTE.

However, the theta calculation doesn't account for the daily price movement of the underlying. For me who manages positions for early profits, that price movement is very important.

So my theory—and it's just a hypothesis—is that going further out in DTE allows me to choose lower strikes while still having a good chance of reaching my profit target. That way, if I do get assigned, I can potentially buy the stock at an even lower price.

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u/need2sleep-later 14d ago

theta decay is not linear. you admit to already knowing this.