Cheapest options with daily expiry?

Discussion in 'Options' started by wxytrader, Feb 10, 2024.

  1. shMark

    shMark

    My guess is the premium is higher. Monthlies pay more than quarterlies, and weeklies pay more than monthlies.
     
    #11     Feb 11, 2024
  2. I'm referring to stocks with daily expirations, not weekly expirations.

    IWM (2 days)
    SPY (daily)
    QQQ ( daily)
    XSP (daily)
    SPX (daily)
     
    #12     Feb 11, 2024
  3. shMark

    shMark

    On an annualized basis of course.
     
    #13     Feb 11, 2024
  4. Quanto

    Quanto

    Hmm. Regarding Spreads you should study this example (by TDA) comparing a CSP to a PutSpread:
    W/o Spread (ie. CSP) the MarginReq is $13,290.
    Using a PutVerticalSpread instead of the CSP drops the MarginReq to just $400 (!) only.
    You give up only $25 of the potential profit of $110 to achieve such a huge reduction in MarginReq.
    IMO it's a good deal.

    But then maybe not, when trading 0DTE with StopLoss orders.
     
    Last edited: Feb 11, 2024
    #14     Feb 11, 2024
  5. S2007S

    S2007S


    Oh yes because you are going further out. I don't know if you want to lock in a higher premium but not having available funds to use else where. ..I only go out a day maybe a few days but focus on the daily instead.
     
    #15     Feb 11, 2024
  6. S2007S

    S2007S


    It's been too long. They need to get more daily expiring options on this list. Even highly traded etfs for all sectors.
     
    #16     Feb 11, 2024
  7. Quanto

    Quanto

    We all are on the same wave :) Let's meet next year as some RichyBoyz... :)
     
    Last edited: Feb 11, 2024
    #17     Feb 11, 2024
  8. Yes but reducing the margin doesn't increase how much of the underlying I can afford to get assigned.
     
    Last edited: Feb 11, 2024
    #18     Feb 11, 2024
  9. Quanto

    Quanto

    If you trade index options then no assignment, b/c these are European style (no early assignment, and no underlying stock, ie. is cash settled like what the PnL chart shows at exp for the index value).
     
    #19     Feb 11, 2024
  10. I want to get assigned.
     
    Last edited: Feb 11, 2024
    #20     Feb 11, 2024