Weekly Options – Seriously?
For a lot of the more ‘old school’ option income traders – the idea of trading ‘weekly options’ seemed a bit surprising and actually a great way to assume a lot of risk.
Weekly Options – Dangerous?
Traditionally, option income sellers use monthly options to create income positions like iron condors, calendar spreads, credits spreads, etc. And traditionally they always teach and warn to try to make sure you get out of your trades BEFORE expiration week. Expiration week can be dangerous to a postion due to how the greeks start to work as options get close to the ‘end’ of their life cycle.
Weekly Options – Hit Me!
So the notion of trading the weeklys – where the entire existence of the these options ARE expiration week could seem similar to visiting a run down shoddy carnival, climbing into a half broken rusty roller coaster – with no seat belts – and telling the toothless dirty guy running the thing to give it everything he’s got.
But – even so, the weeklys DO present some really interesting new ways to trade – and as long as we can be open to these and of course realize that they can not be traded in the same way we have been trading the monthly income trades up to now – I think a lot of us option traders who are used to the monthlies and sort of set in our ways will be quite intrigued and seriously interested in these fresh methods.
Let’s get into those on the next post. Until then, be sure to sign up for our free trading videos and free option newsletter where we dive more into weekly options along with other ways to trade options for income – by clicking here