How Far Out Should I Sell Covered Calls?
A sweet spot for most traders is selling covered calls between 10 and 45 days to expiration (DTE). This range offers solid time decay benefits (theta), manageable risk, and decent premiums.
Covered calls work best when theta decay is working for you — meaning the option loses value quickly as time passes. Shorter expirations decay faster, but they might not offer enough premium. Longer expirations offer more premium, but decay slowly and lock you in longer.
⏳ DTE Breakdown:
DTE | Benefits | Drawbacks |
|---|---|---|
7–14 days | Fast time decay, flexibility | Small premium, frequent rolling |
21–45 days | Balanced theta, good premium | Medium management effort |
60+ days | Big upfront premium | Slower decay, more risk exposure |
💡 Extra Considerations:
Volatility: Higher IV = more premium at every DTE
Liquidity: Monthly options often have better volume and tighter spreads
Rolling strategy: Shorter DTEs are easier to roll frequently for active income
📈 Use our Covered Call Calculator to test different expiration dates and compare total return vs risk. Try 7-day, 30-day, and 60-day setups side-by-side and let the math guide your choice.