Trading_weekly_stock_options_4_tips_you_should_know

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					Trading Weekly Stock Options – 4 Tips You Should Know!
                                 Weekly options trading is fairly intuitive. The list of weekly
                                 options are listed every Thursday, and they expire the following
                                 Friday. Weekly options are available on all the usual stocks and
                                 indexes, such as the S&P 500 Index (SPX), along with the major
                                 exchange-traded funds (ETFs), such as the Financial Spider
                                 Select XLF.

Weekly options are also available on some of the most widely traded equities such as, includes
Apple Inc. (Nasdaq: AAPL), Exxon Mobile Inc. (NYSE:XOM ), and JPMorgan Chase & Co.
(NYSE: JPM). The list of stocks and futures that are traded regularly change. Information with
regard to availability are listed on the CBOE web site.


Weekly Options Tips
    Trade weekly options when you are looking for a short term movement in a financial
     instrument

Trading weekly options have many benefits. The options have a shorter duration than standard
options which expire every 3rd Friday of the month. Shorter dated options will cost less than
longer dated options, because there is less time value which generally drives up the price of an
option. You should trade weekly options when you are looking for short term movements in a
market.

    Use weekly options to take advantage of volatility around an economic event or earnings
     release


Weekly options can be specifically valuable around economic data releases or earnings
releases. Because you can keep your premium to a minimum, there’s probably no better way to
maximize the power o leverage within the generic options arena.

    Trade weekly options when you need to hedge your portfolio

If you have a portfolio of stocks and options you might be able to offset some of your exposure
with weekly options. You can purchase insurance or short-term protection for your stocks. The
cost will be low than standard options with more than a week to expiry. Additionally, to hedge
your exposure to the market you can purchase weekly puts on the major indices to offset
potential losses on your portfolio.

    Generate short term income by selling covered calls

You can also sell covered calls on weekly’s. Although the income you receive will be less than a
longer term option, your waiting time until expiration will be a lot shorter.
Weekly Options Specifications
The Chicago Board of Options Exchange offers three different types of weekly options, along
with weekly settlement data and volume/open interest information. Some of the options they
offer have morning settlements while others offer PM settlement.

Weekly options are traded using American-style exercise features, which make then exercisable
at any point prior to the expiration date. On expiration, the buyer has the right but not the
obligation to receive the underlying instrument.

Liquidity on weekly options is robust, with the average weekly volume for the new weekly options
increasing above 300,000 contracts by November 2010.

Your weekly options Edge

If you want to know all the ways on how to trade weekly options successfully, check out my
digital guide “Discover How To Make Money Each Week Trading Weekly Options”, which you
can download read in just a few minutes.

It’s time for you to stop sitting on the sidelines wishing about all the money you can make, and
start learning and understanding how to make money trading weekly options. I’ll show you how.
Go here for all the details: Weekly Options Training Course

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To learn more, download my Free - 5 Step Formula To More Profitable Trades http://www.OptionSIZZLE.com

Joshua Belanger is the founder of OptionSIZZLE.com where he provides free and premium option trading
information and resources.

				
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posted:11/18/2012
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