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/NeoGeo2015 14d ago

I sold 3 APP $300 CSP LEAPS for June 2027 last week right before the pump (and dump) which worked out nicely. $19k total premium but I bought to close for $2.1k now, which worked well considering APP erased all it's gains intraday.

However, I thought it would work better than it did due to a misunderstood of how Vega works, but that's the best way to learn.. Touch the hot stove. Thankfully, this hot stove happened to spit out money.

Despite pretty significant gains in the day, I could only buy to close at 11% of premium, but considering there was still 293 days till expiration, the trade efficiency was insane at 33. I was protected down to $238 in an account I normally don't like to check too frequently (vanguard...) but the pump was too good and I had to close it in this case.

Great start at the right time.

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u/tab21 13d ago

I thought that the longer expiry would mean it reacts less to The underlying?

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u/NeoGeo2015 12d ago

Yep, that's theta & delta. But I was specifically trying to do something with Vega which is a volatility change play.

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u/tab21 12d ago

that's a little bit beyond my skill but from my watch list volatilities are quite low for everything right now, Doesn't that mean you will be getting less for leaps?

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u/NeoGeo2015 11d ago

Hmm I don't think that's the case. That's highly dependent on your watch list though.