Weekly Options

Discussion in 'Options' started by Rehoboth, Jul 16, 2010.

  1. How are these things working? I notice them in a few names like SPY and BP. When are they creating the new contract.
     
  2. Are you sure about BP? I thought it was only for QQQQ, DIA, SPY and maybe a couple of other ETF's.

    I think it's great for buyers who like cheap option's for a 1 or 2 day trade just before expiration. The QQQQ options should be a hot seller.
     
  3. somebody posted this before:
    http://www.cboe.com/micro/weeklys/introduction.aspx

    CBOE offers the following Weeklys options (as of July 16, 2010):

    * SPX : S&P 500 Index Weeklys with European-style options on the S&P 500 Index with Friday A.M. settlement. Last day of trading is a Thursday.
    * NEW! DJX : Dow Jones Industrial Average Weeklys with Friday A.M. settlement. Last day of trading is a Thursday.
    * OEX Weeklys : One-week, American-style options on the S&P 100 Index with Friday P.M. settlement (last day of trading is a Friday).
    * XEO Weeklys : A European-style version of OEX Weeklys.

    And Weeklys on Exchange Traded Funds and equities. As of July 5, 2010, these included the following::

    * SPY - Standard & Poor's Depositary Receipts
    * QQQQ - Nasdaq-100 Index Tracking Stock
    * IWM - iShares Russell 2000 Index Fund
    * GLD - Options on SPDR® Gold Shares
    * XLF - Financial Select Sector SPDR
    * EEM - iShares MSCI Emerging Markets Index
    * C - Citigroup Inc
    * BAC - Bank of America Corp
    * AAPL - Apple Inc
    * BP - BP PLC
    * F - Ford
    * GOOG - Google Inc.
    * AMZN - AMAZON.COM Inc.
    * FAS - Direxionshares Daily Financial Bull 3X Shares
    * FAZ - Direxionshares Daily Financial Bear 3X Shares
    * MSFT - Microsoft Corporation

    Weekly options on ETFs and equities are physically settled, American-style exercise with "P.M." settlement and the last day of trading generally is a Friday.
     
  4. Expire at close Thursday, July 22, 2010 ? while CBOE says they all expire at Friday.
     
  5. And to add to the confusion they still trade on Friday, so do they "expire" on Saturdays like the regular options? I think so.
     
  6. uptickk

    uptickk

    SPX stops trading at the end of the day Thursday with the SET price determined using the component prices of the S&P 500 Friday morning. This usually posts around noon on Friday.
     
  7. Carl K

    Carl K

  8. i apologize in advance if this is a stupid question. MSFT reports on Thur AH. I would like to sell some strangles on it using the July 23 weeklies. Generally speaking, when is the best time to establish such a position to take advantage of the greatest implied volatility:
    1) Thur morning
    2) Thur EOD
    3) should not make any difference when as long as it on Thur
    :confused:
     
  9. #10     Jul 22, 2010