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The Start Of Weekly Options

By Ted Nino


We first heard of options in the year 1973. The Chicago Board Options or CBOE was behind the standard call options. In the year 1977, the put option was established after the success of the standard call options. The put options became very popular. Over the years, its growth rate is really amazing. The investors know how options works. The overall increase was brought about by the familiarization of the investors on using these options.

2005 was the launching of the new class option called Weekly Options by Chicago Board Options Exchange. Thirty two years after the first introduction of call options weekly options were introduced. The term "weeklys" and weekly options are synonymous. Options may differ on many ways, however, "weeklys" and monthly options are comparable. Weeklys only last for eight days while monthly options are not. The weeklys are available every Thursday and next Friday it expires. Investors of monthly options should be aware that it has twelve monthly expirations which is expected on the third friday of every month. But with weeklys, investors can now enjoy 52 expirations for the entire year.

You can choose different options according to your strategies. Strategies may vary based on your selected options. What are the best techniques for weeklys? On weekly options, you may use most of your techniques for 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.

Investors are taking advantage of the final week of an option's life. More time decay curves can be observed on weekly options. The payment for investors of monthly options is twelve times. Weeklys terms of payment is fifty-two times a year.

You may use the same strategies (like Weekly Options) for monthly and weekly options. You may sell puts and calls to other investors. You can also strategies like covered calls, spreads and condors. The three strategies are both good for weekly and monthly options. The only difference is that they have a shorter time line.




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