Well as you may be aware, normal monthly options are issued on a quarterly basis for each stock/ETF/index. And there are different cycles of expiration, so some, but not all options are on a January/April/July/October (also known as ?JAJO? options). The other 2 main cycles are February, May, August, and November, and March, June, September, and December.
For an option buyer of Calls or Puts, this time premium can often act like a ?ticking clock? against the profit potential of their position. Each day that elapses, time decay erodes from the option?s value ? in addition there is risk in implied volatility going up or down and changing the option?s value.
So one could look at Weekly Options as an alternative to get more ?bang for the buck? in your options trading. These options, which are rapidly growing in popularity, are generally issued/listed on a Thursday morning and expire the following Friday. The exception being expiration week, where new issues are not presented to the market (Thursday prior to a normal option expiration cycle). The short maximum holding period of these options means that the time premium in their pricing (and their time decay) is less than a normal monthly option.
Go here to learn more about trading Weekly Options
How I Trade Weekly Options
For the aggressive trader the short-term, ?bang for the buck? nature of Weekly Options is something that you want to have in your trading arsenal.
In trading Weekly Options I tend to utilize short-term charts, from 15 minute to 1 hour to target the big profit opportunities. The short holding period and narrow time frame focus fits well with the big discount on time premium and time decay in Weekly Options.
I have innovated a unique combination of technical indicators to trade Weekly Options. The indicators include Percent R, CCI, Acceleration Bands, Bollinger Bands, and DMI/ADX, with my own personal settings and triggers to help me know when to enter and exit Weekly Options trades. Click here to get more information on my proprietary settings and how they can help you to trade Weekly Options.
With Weekly Options I am able to zoom in on the best possible opportunities in the biggest moving stocks because ?Weeklys? offer an ever-growing and ever-changing selection of the ?best of the best? trading stocks. With this always moving concept I am able to trade big market events such as; earnings, news events, fed announcements, calendar trends, sentiment, and other findings our research team finds quickly moving.
With Weekly Options in your option trading arsenal you are gaining another useful tool to take profits out of this volatile, trading range market.
Price Headley, CFA, CMT
CEO, BigTrends.com
Free Options Training Kit: Weekly Options
Learn how to make more trading Weekly Options – Click Here!
