- PREMIUM SERVICES FOR INVESTORS
- Trading SPX | A Different Expiration Process
- Weekly Options Definition
- Give Yourself More Options With Weekly and Quarterly Options
PREMIUM SERVICES FOR INVESTORS
So if we are selling a call we are purchasing a call at the same time. By entering these two trades as a single credit spread order, there is only a single commission cost. The difference in prices between these two options provides a net credit to your account. The beauty of this approach, is that there is no price movement in the SPX required to be profitable.
Trading SPX | A Different Expiration Process
SPX can go flat or have little movement at all, and our trade will still be profitable. All we need is for the SPX to close below in this example , and both options will expire worthless and we retain the credit. So, we would make 0. Everything you need to know about how we trade this strategy is here, I would strongly recommend you to read this carefully. Trade Logs.
Activity Feed. The CBOE, the brokers, and the Stock markets that options trade on all make money when more options are traded. The more trades, the more commissions and trading fees they can collect. Their analysis showed that many people were trading options in the last two weeks before expiration. So they introduced one week options, and they have a hit on their hands. As of today, one-fourth of all option volume in a popular stock like Apple is in the weekly options. As they introduce more and more underlyings to trade weeklies on, the trading volume continues to increase.
At least for the CBOE. For options traders it is a different story, but more on that in another article. The premiums will be slightly lower compared to the standard expiration options naturally due to the lower time value.
Weekly Options Definition
Weeklies are a good way to gamble. If Vegas or online gambling are not options, weeklies might be what you are looking for. Why do I say that? Because of the lack of time. They do not allow you the luxury of being wrong on your assessment.
Give Yourself More Options With Weekly and Quarterly Options
And you think earnings will be great and the stock will shoot higher. Your trading options are to buy stock, buy monthly call options, buy a monthly debit spread, or sell a monthly put spread. Buying stock is the most expensive way to trade it.
Buying monthly debit spreads is an even cheaper way to play it. But the gain is capped. If you sell a monthly put spread, you have a higher percentage probability of making money, but it would only be a percentage of the amount you put at risk. Buy Debit Spread Cheapest Return is capped. What if you bought weekly call options? That sounds amazing.
- Weekly Options (aka Weeklys).
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- SPX weekly options.
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- moving average on forex.
- Trading SPX | A Different Expiration Process.