"What's the ideal DTE?" comes up constantly. Some people sell weekly puts, others stick to 30–45 days. I don't think there's one right answer, but I do think the numbers get misread, so let me work through them.
What changes with time
Shorter expiries (about a week)
- Less premium per trade, so you need more trades
- Capital is released sooner
- More decisions, more checking, more fees
- Less time for a falling stock to recover before the option is in the money
Longer expiries (30–45 days)
- More premium per trade
- Capital is committed for longer
- More days of exposure to news, earnings and market moves
- Often more room to manage the position
Neither is safer by itself. They trade one kind of risk for another.
Putting numbers on it
Take a stock at $50 and a $45 put, which would secure $4,500. Illustrative round numbers, not real quotes:
| 30 days | 7 days | |
|---|---|---|
| Premium | $1.20 ($120) | $0.35 ($35) |
| Premium ÷ collateral | 2.67% | 0.78% |
| Simple annualised | about 32.4% | about 40.6% |
On paper the weekly trade looks better. But annualising assumes you can repeat the trade every week at the same price, with no gaps, losses or idle weeks. That's why I never rely on it alone. Annualised figures make short expiries look better almost by default.
Four things the annualised number leaves out:
- Each new week is a fresh chance of a sudden drop
- You need a good trade available every week
- Fees add up faster with more trades
- Your own time and attention
"Is a 7 DTE 0.18 delta the same risk as a 31 DTE 0.18 delta?"
No. They look similar because the delta is the same, but a 7-day option at that delta sits much closer to the share price than a 31-day one. A modest drop can put it in the money quickly, with little time left to recover. The 31-day option is further away but exposed for longer. Different risks, not the same one.
What I check
- Is there an earnings date or other event inside the window? A good-looking premium can be payment for taking event risk.
- How often am I willing to look at this position? Short expiries need more attention.
- What does the premium look like against the cash it ties up, compared across expiries, and not only annualised?
I treat 30–45 days as a starting point for research, not a rule. I don't see one expiry window as best for every stock or market, so I compare the premium against the cash tied up, check for events inside the window, and pick the one I can manage comfortably.
For more, see the cash-secured puts guide and the FAQ on how far out to sell.
Educational content only. This article describes how I think about the Wheel. It isn't personal advice or a recommendation to buy or sell anything. Figures are illustrative and exclude fees and tax.
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