Selling options inside 45 DTE isn’t “optimal.” It’s also how I bank quick wins every month.
Math based options trading is really awesome. And that’s saying a lot coming from a guy who never liked math.
Here’s the thing. Selling options works because really simple rules lead to high probability outcomes. The math is already done for us. If we’re selling a 20 delta put that expires in about 45 days, we have an 80% chance of keeping that premium. That’s not a prediction. That’s just probability.
Simple rules. Repeat. Get paid.
The rule I break this time of month
The math says 45 DTE is the optimal time to sell options. Right now that’s July 17th.
But June options expire in 17 days. And I sold some this morning.
Here’s why. Theta decay (the erosion of option value over time) accelerates inside of 21 days. If you’re selling options, that’s a good thing. The premium evaporates fast. Quick wins.
Yes, gamma moves around more in here. The option is more sensitive to price swings. But if I’m selling at a strike that makes sense on the chart, and the stock just needs to bounce or hold for 17 days… I’ll take that trade.
And if I’m wrong and the stock drops to my strike? I roll it out to July, collect more credit, and now I’ve got a normal 45 DTE trade. That first premium just became a bonus.
Here’s what I sent the Inner Circle this week:
Every Monday Inner Circle members get a Weekly Income Newsletter. A trade idea with my exact setup and reasoning. This is this week’s.
That’s the Weekly Income Newsletter. 56 weeks in a row.
If you want trade ideas like this every week with the chart, the setup, and my exact entry, that’s what the Inner Circle is. Click here to join us!
Turning knowledge into wealth,
$Maxwell
This is for educational purposes only. I’m not a financial advisor, just a trader who’s been doing this for nearly 30 years. You’re responsible for your own decisions and the buttons you click in your brokerage account.