The Start Of Weekly Options
We first heard of options in the year 1973. The CBOE or Chicago Board Options Exchange is the one who established the standard call options. On 1977, four years after the standard call options were introduce, the put option was launched. It also become famous to many people. Their popularity was manifested in the increase of trading volume which actually increases at a compound annual rate of growth over 25% between the years 1973 and 2009. Basing from this big increase, it only shows that investors really understands the concept of options. The overall increase was brought about by the familiarization of the investors on using these options.
Chicago Board Options develops a new class of option called Weekly Options in 2005. Thirty two years after the first introduction of call options weekly options were introduced. Weekly options are commonly called “weeklys”. Options may differ on many ways, however, “weeklys” and monthly options are comparable. One of the major difference between weeklys and monthly options is its duration. The weekly options are introduced every Thursday and eight days later, Friday of the following week, they expire. Investors of monthly options should be aware that it has twelve monthly expirations which is expected on the third friday of every month. Investors of weekly options have the benefit of fifty-two expirations per year.
Investors can use their own strategies for these options. Strategies may vary based on your selected options. And what are the efficient tactics for the weeklys that investors may use? With the case of weekly options, you can do just about any strategies that you actually use with longer dated option or monthly options. Things may slightly differ and strategies are now applicable for at least four times every month. On the other hand, you can only apply this techniques for monthly options only once.
Many premium sellers like to take advantage of an option’s rapidly accelerating time decay curve on its final week of its life. More time decay curves can be observed on weekly options. Investor earn twelve times when considering monthly options. Weekly option investments are given fifty-two times payment per year.
You may use the same strategies (like the Calendar Spread) for monthly and weekly options. You can market both put and calls option. Spreads, covered calls and condors are recommended strategies for options. These strategies are proven with monthly and weekly options. The only difference is that they have a shorter time line.
Mr. Ted Nino is an option selling loony – passionate chiefly with trading Weekly Options . Visit his Gamma Scalping site to see his ridiculously clear cut method of riding the weeklys for consistent gains – and extra wonderful option income ’stuff’.






































