Weekly Options Take Charge

The volume of CBOE’s Weeklyssm options has grown rapidly since they expanded their listings into equities and Exchange Traded Products in June 2010.  Now weekly options comprise almost 30% of the CBOE’s average daily option volume.  The list of available weekly options is available on the CBOE website. Among other things, option traders take advantage of the Weeklys to position themselves for earnings releases,  harvest rapid …

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Get weekly updates on the Weeklys

The CBOE has announced a nice new email service for people wanted to know what weekly options are going to be offered each week.  While the list has been relatively stable the CBOE recently extended the list to 35 offerings and they usually make a few tweaks each week.   For example, they recently dropped USO in favor of NDX—something I’m not happy about. They …

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And then there were 35

This week CBOE expanded their selection of  weekly options from 31 to 35.   The symbols added this week (expiring November 5th) are:  IBM PCLN RIMM SLV.   All these except PCLN (Priceline.com Inc.) have previously been on the list at some point.   For more on the CBOE’s weekly options see here,  or see my guest post in the August issue of the online …

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Playing the weeklies…

Created a covered call position today with SPY at 106.89 and 107 SPY calls expiring this Friday–the 23rd.   The calls sold (to open) at 1.18, giving a 1.2% best case profit for the week if SPY closes Friday above 107.   Fidelity supports trading these weekly options, but apparently Schwab does not.

Weekly options for the masses–SPY, QQQQ, IWM, DIA and others

Anyone that trades options knows that the pace quickens the last few days before expiration.   The delta (the change in option price relative to the underlying)  for the ATM option is still around .5, but instead of gradual changes for the deltas on the strikes in / out of the money, the curve starts resembling a step function, going from zero for out-of-the-money, to …

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