Trading Weekly Options

T

traderlux

Starting a new thread for trading weekly options.
(here is a link to an older one)

http://www.elitetrader.com/vb/showthread.php?s=&threadid=204720

I would like to see reasonable comments and trade ideas. If all you are going to say is "it doesnt f@ck'n work", fine, if that makes you happy, glad to oblige with a place to say it. If you have any insight from augen's books and seminars that would be great also.

Let the Lambo roll, the Cam Z28 is parked.
 
I am trading index options credit spreads on weeklies in pre-production mode (small money trading) to discover the differences in dynamics, bid/ask spreads, fill probabilities, etc. vs. monthlies. So far it seems that the weeklies act much the same as monthlies during the monthlies last week before expiration. My success rate is the same and I book the same profit every week on the weeklies that I book every 60 days on the monthlies.

Weeklies, like the last week of the monthlies, require a more intense management effort. That's probably why many credit spread traders exit their monthly spreads before the last week of trading. I have the time, so I manage them to the end. Most of my spreads expire rather than being bought back.

After the first of the year, I plan to move weeklies into production mode (serious money trading) with about 20% of the account I reserve for credit spread trading.
 
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