Can you guys imagine what Karen Supertrader will do once she puts selling daily options in her toolkit? What is a better name than "super"trader, maybe Karen Superdupertrader?
Weekly options certainly have some liquidity issues. Many of the large market-makers wont actively quote the weeklies. It is appropriate to be aware of the potential for slippage, especially during the first few cycles.
The daily expirations do provide unique opportunities for both buyers and sellers. Karen is a one-hit wonder. Her time in the limelight will end in spectacular fashion in the next crash, along with all the other open-ended vol sellers. There is a better way.
Not true. Liquidity is the most immediate concern with the weekly options... but you are correct in that it isnt for a lack of volume, exactly. For the record, i trade every short term expiration. I love the weeklies, amazing products.
The product in question (Monday SPX weekly option) does not trade until tomorrow - August 15, 2016, so any impact they have on the Friday weeklies is unknown at this time. But with a daily volume of almost 1,000,000 contracts I doubt the Friday SPX weeklies will be affected.
Actually I have not found this to be the case. The weekly SPX (both Wednesday and Friday) seem to have great liquidity. Since they are traded on the CBOE Hybrid system instead of in the pit, there are many market makers quoting electronically. Their displayed markets are far tighter than the regular expirations in the SPX.
I understand what you mean. The liquidity works for my needs as well. Liquidity is still an immediate concern for the spxw's. As ive already stated, a portion of the large market makers will not quote them. The quoted market on the screen is going to be tighter in an electronic spxw contract rather than an LMM quoted spx contract. The spxw roll is particularly slippery, especially as a result of the commom roll-heavy trade the spx traders call the "go round".
I'm probably going to give the Monday weeklies a try next week. For those of you who have been trading them are you seeing about the same liquidity as the Wed weeklies, i.e. can you generally fill a nickel off the mid?