30 DTE

Vocabulary

DTE - Days to Expiration. All contracts have an expiration where they expire worthless or are executed.
45 DTE - 45 days to expiration
30 DTE - 30 days until expiration
21 DTE - Time decays at a quicker rate the closer we get to expiration. It is theorized that 45 DTE offers
Time Decay (Theta) - Premiums lose value over time. As a seller of time, we want to capture the time value of options.

Selecting DTE (Date to Expiration)

How you want to approach your DTE depends on your willingness to watch your positions. I have held weekly positions, some as short as 2 DTE, and have still made 1-5% on the trade to holding some positions for over a year for 20%+ return on investment. Here are a few of the

Using the 30 DTE or 45 DTE

Below is an example of the Profit % / % of Time and when to take profits. Note that these are 30 DTE and the Day column represents Days Passed (30 Day equals entire contract).

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