Trading Weeklys on Expiration

T

themuffin101

Hey guys. I apologize if I'm not posting this in the right place, I'm new to this forum. If theres another thread about this, please direct me to it. Anyway...

Does anyone have experience trading weeklys on friday afternoons? On the pricier stocks, such as AAPL, you can buy calls/puts that are otm by less than a dollar for less than .20 cents sometimes. It seems like good opportunities to buy these as they are approaching strike prices. Once the stocks pass the strike prices, the percentage profits are insane. I "paper traded" one of these on AAPL recently. The stock was trending up for the day and I bought calls that were like $0.50 otm for like $0.20 and the stock moved up $1.50 in the next 20 minutes and I sold the calls for a little over a dollar. This was pretty late in the trading day(after 2pm) but it seems like an interesting type of trade, although pretty risky and unpredictable.
Just wondering if anyone has done this or if you've had experience doing this. Again, if this has been discussed already, I apologize. Can you just send me a link to that thread.
Thx
 
Intra- day trading the weekly options has been tried many times but it IS risky and unpredictable and I have not seen anyone do this with ANY long term success. Getting fills will be your main issue, you will win some, lose some and the only consistent winner will be your broker.
 
It's a good strategy if you have a view on the stock going into the close. If you don't then there's no alpha.

The options may be mispriced. But while the Streets' models may not be good, they make up for it in terms of liquidity and bid/offer.
 
You will need an account with over $25,000 for this strategy because of the pattern day trade rules. I would prefer to buy the weeklies about 15 minutes before the market closes on Thursday and then close the position Friday afternoon. :)
 
Good idea FX to dodge the PDT :)

I usually trade on the day before expiry because u av some kind of cushion.

I'm fairly sure that trading on expiry day is the most high risk thing you can do on the market.

Hey u may do quite well tho. Risk and reward.
 
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