Selling weekly options vs monthly options

Discussion in 'Options' started by nwoptions, Aug 23, 2020.

  1. What's your opinion regarding selling weekly options? Do you use them more than monthly options? Do weeklies offer any advantage over monthly options (eg tighter spreads)?
     
  2. traider

    traider

    If you are good at trading and can deal with the gamma stress, do the weeklies. higher turnover is better if you have +ve expectancy
     
    nwoptions likes this.
  3. xandman

    xandman

    Why not sell a daily expiration instead of weekly?
     
  4. I sell weekly. On the other hand, monthly can be good if you have the patience.
     
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  5. SanMiguel

    SanMiguel

    If you sold 4 weeklies and all were profitable you'd make more than 1 monthly (in the same stock). However, the weeklies have a higher chance of moving below your put or above your call since for a reasonable profit, you are closer to ATM points in the stock... Depends on the volatility of the stock also
     
  6. Handle123

    Handle123

    I thoroughly enjoy buying the weeklies, think risk too high selling them.
     
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  7. Can you please elaborate?

    I'm interested in selling weekly bull put spreads.
     
  8. Atikon

    Atikon

    Ve=vol expectancy?
     
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  9. ET180

    ET180

    I frequently do. Short some Monday SPY puts expiring tomorrow...pretty far OTM though.

    I sell more weeklies than monthly simply because I often short both the weeklies and monthlies for the same underlying. The monthly options always have tighter spreads than the weekly. Main advantage of the weeklies is the fastest theta decay. If I think price will stay close to where it is now, I'll sell weeklies. If I'm less certain and want a partial hedge -- if I'm long the underlying, I'll sell weeklies and monthlies against the underlying

    If you want to sell the same strike ATM, you'll probably collect more selling the monthly unless the underlying stays close to the target strike. Example, XYZ underlying trading 50. Trader A sells next month 50 put. Trader B sells next week 50 put. XYZ trades closes first week at 52, second week at 53, third and fourth week at 53.5. Trader B won't be collecting much premium on the later weeks if he's still selling the 50 put. Trader A would have collected more premium in that case.
     
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  10. +ve = positive, -ve = negative
     
    #10     Aug 24, 2020
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