Weekly Options – Adjustments
Another great benefit of trading weekly options vs the regular monthly dated options or the even longer LEAP options is the fact that the weekly options can be used as a form of very cheap, short term insurance.
Weekly Options – Cheaper Insurance
Option traders who regularly trade the iron condor strategy, credit spread, calendar spread, diagonal spread and other similar option income strategies know how important it is to stay on top of those positions – especially in times of higher volatility like what we are experiencing currently.
We also know (or should know) the importance of knowing how and when to properly adjust these types of option trading positions when and if there is a move against our position and we need to shift and re adjust our option risk graph ‘profit tent’.
Weekly Options – More Flexible Management
Before the weekly options were introduced we were stuck with having to use the longer dated monthly or LEAP options to make these option position adjustments – and they certainly worked – however with the introduction of the weekly options a whole ‘new world’ of possible option trading adjustments are now available.
Sure it’s true that there is the much faster time decay that comes along with the weekly options – however – anyone who regularly trades the standard option income type strategies like iron condors, credit spreads, calendar spreads, etc will agree that the flexibility that the weekly options give us for adjustment and management purposes is a great thing to have in our tool box – and when applied properly – either by themselves OR in conjunction with the longer term options – this faster time decay does not need to be an issue – and the benefits that come along with using weekly options for adjustment purposes dwarfs any drawbacks.
To learn more about trading option income strategies like those mentioned above – as well as how to properly manage and adjust those positions for option income and strategies best suited for weekly options – be sure to join our free options income trading website and our free options trading newsletter by clicking here.