If weekly options is suppose to be weekly, why do i see weekly option that expire more then 10 days away? Some are even 37 days away
Cboe (for example) uses the term "Weeklys" to generally refer to the different types of security options that expire on any Friday other than the third-Friday-of-the-month. Weeklys that are part of the Short Term Options Program have a contract duration term of as many as five weeks and are typically listed on Thursdays. The options can expire on any Friday of the month, other than the third-Friday-of-the-month. Also, Short Term Options will not be listed for expiration on a date that an existing contract, such as a Quarterly option, is already set to expire on the same date. In the case of a holiday on the listing date, the listing date is moved back one business day (e.g. from Thursday to Wednesday). In the case of a holiday on the expiration date, the expiration date is moved back one business day (e.g. from Friday to Thursday). These options have a contract duration term of approximately one week and are typically listed on Thursdays to expire on the Friday of the following business week. Settlement is the same as traditional options on the same underlying, e.g., ETF and equity option series are p.m.-settled, OEX option series are p.m.-settled, broad-based index option series in this program are a.m.-settled. For details, product specifications and other information on these options, see http://www.cboe.com/micro/weeklys/ShortTermOptionsSeriesProgram.aspx Also read Cboe Rules 5.5(d) and 24.9(a)(2)(A). Note that the SPX does not participate in the Short Term Option Series Program and, instead, participates in the "End of Week" Program. They are p.m.-settled on Fridays. Finally, there is currently a limitation on the number of Weeklys classes that can be offered. Specifically, Cboe may select up to thirty currently listed option classes and may also match any options classes selected by other exchanges that employ a similar program. You may want to visit other exchange websites to further your education. E.g. CME, CBOT, NYMAX, COMEX, etc. It is important that before you trade any product (options, stocks, futures, etc.) that you clearly understand the rules that you're subject to. What's listed and when, expiation dates and procedures, settlement procedures, etc. Education is important. Best
The weeklies that are listed can be traded. It isn't necessary to wait until the week of the expiration to trade them. However, volume doesn't generally pick up until 10-14 days before expiration.
What if they were called "Fred" and "Wilma"?? Would that clear things up for you? Regardless of their title, trade the instrument, or not, based on what you know -- not what you surmise.