Every Week Is Expiry Week With New Weekly Options!

I have been religiously trading options in the last week.. since several years. and kind of get a feel of the last week action.. they do oscillate and end up getting pinned.. ie. the biggies. come to a stalemate agreement.. and pin the option in a range.. some call it max pain.. . pinned down.. .it does happen... just think about the life cycle of a monthly option... it goes on a roller coaster ride. and finally settles.. if it has not moved much in 3.5 weeks. then why( if all things are normal) should it oscillate much.. folks had a full month to move the stock...

now the fun part with weekly. this is gaining nice volume and should behave just like how our last week behaves.. but the monthly option has a certain momentum and throws it weight around..

so we have to take into consideration a lot of factors. we cant just blindly assume it will behave just like the last month .. what do the big boys do now.. do they try to pin.. each weekly option too..?
 
Funny how BP is one of the equity options with weekly expirations. Coincidence?

As with any trading vehicle, the proof will be in the pudding whether it will be useful for anyone .... and of course, liquidity is a factor. Will be interesting to watch, though.
 
All liquid stocks should trade weekly options as well. Why would any one wanna trade a time frame higher than that. I hope they come out with dailies soon on the SPY too.
 
Quote from iloveoptions:

All liquid stocks should trade weekly options as well. Why would any one wanna trade a time frame higher than that. I hope they come out with dailies soon on the SPY too.
More...
daily options? how about hourly? :D
 
CBOE offers the following Weeklys options (as of July 16, 2010):

SPX : S&P 500 Index Weeklys with European-style options on the S&P 500 Index with Friday A.M. settlement. Last day of trading is a Thursday.
NEW! DJX : Dow Jones Industrial Average Weeklys with Friday A.M. settlement. Last day of trading is a Thursday.
OEX Weeklys : One-week, American-style options on the S&P 100 Index with Friday P.M. settlement (last day of trading is a Friday).
XEO Weeklys : A European-style version of OEX Weeklys.
And Weeklys on Exchange Traded Funds and equities. As of July 5, 2010, these included the following::

SPY - Standard & Poor's Depositary Receipts
QQQQ - Nasdaq-100 Index Tracking Stock
IWM - iShares Russell 2000 Index Fund
GLD - Options on SPDR® Gold Shares
XLF - Financial Select Sector SPDR
EEM - iShares MSCI Emerging Markets Index
C - Citigroup Inc
BAC - Bank of America Corp
AAPL - Apple Inc
BP - BP PLC
F - Ford
GOOG - Google Inc.
AMZN - AMAZON.COM Inc.
FAS - Direxionshares Daily Financial Bull 3X Shares
FAZ - Direxionshares Daily Financial Bear 3X Shares
MSFT - Microsoft Corporation
Weekly options on ETFs and equities are physically settled, American-style exercise with "P.M." settlement and the last day of trading generally is a Friday

Weeklies on FAZ and FAS lol this just gets better.:)
 
Quote from iloveoptions:

All liquid stocks should trade weekly options as well. Why would any one wanna trade a time frame higher than that. I hope they come out with dailies soon on the SPY too.
More...

:D
 
Often I sell OM options against swing tops and bottoms before a turn and when I have a certain amount of profit choosing between staying into expiration or buying back or hedging has always been a big decision. Before the weeklies came out sometimes I have ended up with convoluted positions.
With the weeklies there is a bit less need to buy back, just let them expire.

Sometimes I front run a breakout by going long options if I was pretty confident the breakout would happen. The potential premium loss for a day is less then what I would lose on stops if I bought the breakout and the it failed.

I also trade the last day(pure Gamma)just for fun, legging into a long strangle and gamble a few bucks on a sudden move. Now it's 4x monthly opportunity.
(Expiration day trading is the only time I ever get close to gambling.)

Regards,

GC
 
Quote from gurucandidate:

Often I sell OM options against swing tops and bottoms before a turn and when I have a certain amount of profit choosing between staying into expiration or buying back or hedging has always been a big decision. Before the weeklies came out sometimes I have ended up with convoluted positions.
With the weeklies there is a bit less need to buy back, just let them expire.

Sometimes I front run a breakout by going long options if I was pretty confident the breakout would happen. The potential premium loss for a day is less then what I would lose on stops if I bought the breakout and the it failed.

I also trade the last day(pure Gamma)just for fun, legging into a long strangle and gamble a few bucks on a sudden move. Now it's 4x monthly opportunity.
(Expiration day trading is the only time I ever get close to gambling.)

Regards,

GC
More...

....interesting.....
 
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