This week our Free Options Income Trading Newsletter (you can join this for FREE by CLICKING HERE ) showed a great little video on weekly options, how they are continuing to explode in popularity and 3 different ways to trade them.
The weekly option trading vehicle has really taken off recently – actually since they were first introduced just a year or two ago – and they continue to soar in volume as retail option traders take to them.
The CBOE is showing that sometimes ten to twenty percent of the overall volume of options that are being traded are in the weekly options products – showing that these shorter term options are being really well received and used by not just professional traders but the retail crowd as well.
Individual investors are using these trading vehicles in a variety of different ways – just about any type of option strategy that be used with regular monthly or longer term dated options – can also be used with the weekly product.
This includes being used as calendar spreads – or variations on the calendar spread, more like diagonals. Also covered call trades where the weeklys are being sold against stock that is owned. Vertical spreads are being used – butterfly trades – even short term iron condor like trades.
There is also plays being made with the weekly option around earnings reports, product announcements, news events, FDA announcements, etc – where traders are making both long and short direction trades.
For more on how to learn a VARIETY of DIFFERENT option income trading strategies that can used with the weekly options, be sure to join our FREE option income trading newsletter by clicking here.
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