Thursday 28 June 2012

Weekly Options - Launching The Theta Positive Plays To Magically Create Weekly Options Income

By Ted Nino


During 1973, the standard call options gain its popularity. The CBOE or Chicago Board Options Exchange is the one who established the standard call options. On 1977, four years after the standard call options were introduce, the put option was launched. It becomes very successful and well-recognized. Over the years, its growth rate is really amazing. Basing from this big increase, it only shows that investors really understands the concept of options. The overall increase was brought about by the familiarization of the investors on using these options.

Chicago Board Options develops a new class of option called Weekly Options in 2005. Weekly options was only started after the standard call option and put option were launched. Weekly options are commonly called "weeklys". "Weeklys" can be compared to monthly options by the investors. However, there are also differences that you will be able to determine when you compare the two of them and the most pronounce difference that they have is the fact that weeklys is only capable of existing for eight days. The expiration of weeklys is only eight days and you can get it every Thursday that lasts until Friday of the next week. On the other hand, monthly options has better expirations which is on every third friday of each month. Weekly options has the benefit of fifty-two expirations on a yearly basis and any investors of it will surely enjoy it.

You can choose different options according to your strategies. Different tactics are currently available according to your chosen options. Now, what are the recommended methods to use weekly options effectively? 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. Before, you are only doing it once a month with monthly options.

Many premium sellers like to take advantage of an option's rapidly accelerating time decay curve on its final week of its life. More time decay curves can be observed on weekly options. There are twelve times payment for investors who goes for monthly options. Weeklys terms of payment is fifty-two times a year.

The strategies that you can do with my website are much the same strategies with the monthlies. Puts and calls option can be sold easily. Spreads, covered calls and condors are recommended strategies for options. The three strategies are both good for weekly and monthly options. The major difference of the two options is the time line.




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