The CBOE standardized call options in 1973 and did the same for puts in 1977. In those days, options were an esoteric investment vehicle utilized only by money-management professionals. However, from their inception, options have steadily increased in popularity — trading volume on options grew by a compound rate of 25% per year from 1973 through 2009.
So you know about calls and puts; LEAPS; and maybe even more complex strategies like covered-call writing, naked-put selling, straddles, spreads, and collars… if you don’t, it’s okay, because these ideas are going to be the subject of the next TradingTips.com video newsletter. This week’s episode, however, is focused on a whole new class of options: weeklys.
Weekly options began trading in 2005. Since that time, their increase in popularity has mirrored that of regular options, but at a more accelerated pace. What’s all the fuss about? Watch this week’s episode and you’ll find out!
In this episode, you’ll learn:
-How weekly options work: when they’re released, when they expire, and which securities have weekly options available for trade.
-How weekly options differ from longer-term options — and how they’re similar.
-The pros and cons of weekly options.
-Some recommended strategies for turning some of the disadvantages of weekly options to your favor.
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
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