Wednesday, June 27, 2012

Free Article Directory: Surfing Weekly Options - Utilizing The Spread ...

By Ted Nino

Call options started way back in 1973. Chicago Board Options Exchange started the standard call options. The put option started in 1977. It also become famous to many people. Over the years, its growth rate is really amazing. The investors know how options works. Another conclusion that we can get out of this increase will be that investors are using them comfortably and they are using them with various strategies.

The Chicago Board Options Exchange brings a new class option called Weekly Options in year 2005. After the prior options, weekly options is now available. Weekly options are commonly called "weeklys". Options may differ on many ways, however, "weeklys" and monthly options are comparable. Weeklys only last for eight days while monthly options are not. You can get weekly options on Thursdays and it automatically expire after eight days. On the other hand, monthly options has better expirations which is on every third friday of each month. But with weeklys, investors can now enjoy 52 expirations for the entire year.

Investors can use their own strategies for these options. You can choose a lot of techniques for these options. What are the best techniques for weeklys? With the case of weekly options, you can do just about any strategies that you actually use with longer dated option or monthly options. You may notice that these techniques can be done four times monthly for weeklys. You can only use your techniques once for monthly options.

Investors are taking advantage of the final week of an option's life. More time decay curves can be observed on weekly options. There are twelve times payment for investors who goes for monthly options. Investors were paid fifty-two times for getting a weekly option.

The strategies that you can do with weekly options are much the same strategies with the monthlies. You can market both put and calls option. You can also strategies like covered calls, spreads and condors. The three strategies are both good for weekly and monthly options. Obviously, weekly options has shorter time line than monthly options.



About the Author:


Ted 'The Spread is an option selling psychotic - fervent especially with trading the butterfly spread . Click over to his weekly options site to take a look at his very effortless system of riding the weeklys for reliable returns - and more wonderful option income 'stuff'.

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