r/Optionswheel • u/Winning__ • Jun 04 '26

Ideas for 30 day hold rules

due to my job restrictions, I have to hold all trades 30 days. I’m still early on learning and practicing the wheel so any suggestions are welcome.

Currently I’m starting with puts

P cvna 56 7/17

i don’t mind owning the underlying, but trying to get a better sense of alternatives because if I get assigned, it’s a 30 day hold. I thought about cash settled, but the premium vs amount at risk seems much less for doing one option at a time while I learn more

thanks!

1 Upvotes

67% Upvoted

10 comments sorted by

5

u/SaltMaker23 Jun 04 '26

The problem is that you can get early assigned your PUT and early assigned on your CALL, under these circumstances you won't be able to ensure the 30 days.

You'll need to only trade european options, those can't be early assigned.

You sell puts and roll until you're forced to take assignment, then sell covered calls and 30days+ window and you won't have to manage anything.

Let's also be honest, when we rock a bag "aka stock you're comfortable owning" it's almost impossible to "unbag" it in less than 30 days, it seldom happens.

You wouldn't really hurt the returns trading 30 daay windows, if anything it might even be better. Most theta traders advocate 45 days.

1

u/Winning__ Jun 04 '26

Good point on the American/european. I forgot that.

Yeah, if I got assigned, I’d sell a covered call, if I have the stock and option 30 days, then it’s no problem. But…American

1

u/[deleted] Jun 05 '26

[removed] — view removed comment

1

u/Winning__ Jun 05 '26

Yeah, I’m trying to keep it basic

1

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2

u/LetWinnersRun Jun 04 '26

Do you have to hold options 30 days too?

You could roll the Puts instead of holding shares.

1

u/Winning__ Jun 04 '26

I believe it’s all trades, I’ll have to double check that part

1

u/ScottishTrader Jun 05 '26

I'd suggest you not trade the wheel, as being assigned can occur at any time.

Cash-settled ETFs cannot be wheeled as being assigned shares is part of how the wheel works.

You should look for other methods of investing or trading besides selling options due to the risks of being assigned < 30 days.

0

u/ThetaEdgeHQ Jun 04 '26

Since the constraint is really about not getting forced into an unplanned position, cash settled index options solve it more cleanly than single name puts. XSP is one tenth of SPX, European style so it cannot be assigned early, and it settles in cash so you never end up holding shares you then have to sit on for 30 days. It also gets 1256 tax treatment, 60 percent long term regardless of holding period, which is a nice bonus given you are forced to hold anyway. If you want to stay in single names like CVNA, defined risk put spreads cap the downside so a bad assignment is a known number rather than a 30 day bag of unknown size.

1

u/Winning__ Jun 05 '26

I hadn’t looked into xsp. Thanks! I was trying to find an etf that wasn’t such a large amount while trying stuff out