Monday Weekly options

FSU · Jul 30, 2016

Starting Aug 15, the CBOE will have Monday weekly options in the SPX. Looks like they are well on their way to daily expirations. So now we have, Monday, Wednesday, Friday and end of the month expirations in the SPX, in addition to regular expirations.

http://ir.cboe.com/press-releases/2016/07-11-2016-193925310.aspx

gkishot · Jul 30, 2016

FSU said:
Starting Aug 15, the CBOE will have Monday weekly options in the SPX. Looks like they are well on their way to daily expirations. So now we have, Monday, Wednesday, Friday and end of the month expirations in the SPX, in addition to regular expirations.

http://ir.cboe.com/press-releases/2016/07-11-2016-193925310.aspx

More trading fees for them.

TradeCat · Jul 30, 2016

Closer to becoming binary options.
Heck! Why lose money weekly when you can just do it daily.

OptionGuru · Jul 30, 2016

Good for buyers of options.
They don't have to pay for time value they don't want.

gkishot · Jul 30, 2016

How does it matter on what day they expire? Friday expirations should be enough. Let's see if the other ones will get enough volume.

stepandfetchit · Jul 30, 2016

My concern with the new options (Wed close, and now Monday close), is they will take some of the liquidity from the normal Friday weeklies (increased slippage for active traders).

TradeCat · Jul 30, 2016

OptionGuru said:
Good for buyers of options.

They don't have to pay for time value they don't want.

More like good for the brokers and exchanges who will help more naive "traders" and retirees lose their money in more diverse ways.

CBC · Jul 31, 2016

Daily would be really good, hopefully for ES.

1245 · Jul 31, 2016

stepandfetchit said:
My concern with the new options (Wed close, and now Monday close), is they will take some of the liquidity from the normal Friday weeklies (increased slippage for active traders).

That is a good point. Market Makers will provide the same markets but the customer flow will be spread over many more dates and strikes. More is not better if you are hoping to do a trade with another customer. From that standpoint, it would be better to have just regular expiration.

OptionGuru · Jul 31, 2016

Any concern about a lack of liquidity for the Friday weekly options due to the new Monday weekly options is unfounded.

Some info from the CBOE link.

SPX Weeklys are one of CBOE's fastest-growing products.
SPX options continue to be the most actively traded U.S index option.
2015 annual volume was 236.5 million contracts.
2015 average daily volume 938,620 contracts.
2016 is 18 percent ahead of the same period last year.
2016 average daily volume almost 1,000,000 contracts.