Directional Manage DTE
Setting key
directional_manage_dte
Default
30
What it does
DTE backstop for directional trades. Closes long debit positions when this many days remain, regardless of profit/loss. Long options bleed theta fast near expiration: at 21 DTE you are spending more in theta decay than the position is likely to recover.
When to change it
Raise to 30 for faster exits (less theta drag). Lower only if you have a strong reason to hold a directional bet into expiration.
Safe range
14 (hold longer) to 30 (exit early, less theta bleed).
Example
Bull call spread entered at 40 DTE. Still slightly underwater at 22 DTE. At 21 DTE, manage_dte fires and the position is closed. The remaining theta decay would likely not recover the loss.