Weekly Options

Quote from Rehoboth:

How are these things working? I notice them in a few names like SPY and BP. When are they creating the new contract.

Are you sure about BP? I thought it was only for QQQQ, DIA, SPY and maybe a couple of other ETF's.

I think it's great for buyers who like cheap option's for a 1 or 2 day trade just before expiration. The QQQQ options should be a hot seller.
 
somebody posted this before:
http://www.cboe.com/micro/weeklys/introduction.aspx

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.
 
Quote from ramaTrade:

Expire at close Thursday, July 22, 2010 ? while CBOE says they all expire at Friday.

And to add to the confusion they still trade on Friday, so do they "expire" on Saturdays like the regular options? I think so.
 
SPX stops trading at the end of the day Thursday with the SET price determined using the component prices of the S&P 500 Friday morning. This usually posts around noon on Friday.
 
i apologize in advance if this is a stupid question. MSFT reports on Thur AH. I would like to sell some strangles on it using the July 23 weeklies. Generally speaking, when is the best time to establish such a position to take advantage of the greatest implied volatility:
1) Thur morning
2) Thur EOD
3) should not make any difference when as long as it on Thur
:confused:
 
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