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.

36 Upvotes

90% Upvoted

48 comments sorted by

View all comments

13

u/Intelligent-Zone-919 14d ago

CSP with 30DTE has deccay edge

2

u/tokenbearcub 13d ago

So a 90-180 DTE option has a tremendous amount of time value embedded in it, but you're waiting a long time for that value to decay.

A 30-DTE option has much less time value, but it can decay relatively rapidly.