Expiration Week Only-EXTREME Options Trading

Discussion in 'Options' started by increasenow, Jul 26, 2009.

  1. Expiration Week Only-EXTREME Options Trading...

    let's be flat out real...the best opportunities for trading options lie in the Expiration Week Only-EXTREME Options Trading...

    these 5 days give great 'huge move' options trading...anyone just trade options this week?

    we are about 4 weeks away from doing this in August...the moves of the options as relates to underlying stock/etf/index are flat out amazing...
     
  2. thinking about trading these those 5 days:

    QQQQ
    SPY
    IWM
    USO
    GLD

    ...others?
     
  3. erol

    erol

    doubled edged sword IMO.

    personally don't have the testicular fortitude to do this.
     
  4. mike007

    mike007

    butterflies are not to bad to trade within the last 2 weeks before expiration. However, I am usually rolled out into the next month by the first 2 days of expiration week.
     
  5. See--
    http://seekingalpha.com/article/151275-book-review-trading-options-at-expiration-by-jeff-augen



     
  6. I do it, trading options on expiration week is the bread and butter of my option trading. I never trade option spreads under any other conditions.

    I know most of you guys will think this is crazy but for some reason, it works much better for me than longer term ones... I guess my signals and trading style are better suited for that. In fact, last fall when all hell broke loose, I came out on top because of it. Had I been stuck in long term spreads I would have taken the same kind of hit many LLP's have taken...

    However there are a few things to consider:

    1) You need to be ultra careful because you do not have the luxury of time to recover to very steep moves.

    2) There are only one expiration week for stocks per month so you are forced to trade weekly's on index the rest of the time and that limits choices.

    3) You can hardly buy "over-insurance" because it looses its value very fast.
     
  7. Get castrated!

    (wink)
     
  8. does anyone know anyone that really 'for real' only trades these 5 days?...you need to check it out...the moves in the options are MONSTER compared to relatively small moves in underlying...
     
  9. I trade them every expiration which for me it's twice a month, not just once as they are my favorite weeks. It's not for the faint of heart though. Thus, your timing of the magnitude of volatility, and the direction of the underlying better be impeccable.
     
  10. erol

    erol

    haha ^ priceless trading wisdom?

    if it'll help me deal with high gammas....


    ^ totally not for me...

    I'll be "wrong" the first 3 weeks, then "right" the next 2 weeks after that.
     
    #10     Jul 26, 2009