Trading weekly options

trading weekly options trading weekly options Cash Cow is a premier Weekly Options Newsletter written by famed options trader and author Chuck Hughes. Each week Chuck provides members with top-notch option trading strategies, in-depth market analysis, new profit opportunities, and more. Over the past five years alone, we have experienced a global financial meltdown, severe recession and bear market, high unemployment, increased market volatility and an uncertain economy. This financial turmoil has made it very difficult for the average investor to realize a consistent return on investment.

Despite these difficult market conditions, Chuck's option strategies produced over $3.3 million in actual profits over the past five years. Brokerage account statements confirming these results are available in his Weekly Option Winner manual. The manual shows his $3,308,137.76 in profits with an average return of 69.3%. The average number of days in a trade was 67 days resulting in an annualized return of 377.5%. There were 335 winning trades and 21 losing trades resulting in 94.1% accuracy. Option Investing Produces $3.3 Million in Actual Profits.

trading weekly options Weekly options have become a stalwart among options traders. Unfortunately, but predictable, most traders use them for pure speculation. But thatЂ™s okay.

As most of you know, I mostly deal with high-probability options selling strategies. So, the benefit of having a new and growing market of speculators is that we have the ability to take the other side of their trade. I like to use the casino analogy.

The speculators (buyers of options) are the gamblers and we (sellers of options) are the casino. And as well all know, over the long-term, the casino always wins. Why?

Ђ¦because probabilities are overwhelmingly on our side. So far, my statistical approach to weekly options has worked well. I introduced a new portfolio (we currently have 4) for Options Advantage subscribers in late February and so far the return on capital has been slightly over 25%. IЂ™m sure some of you may be asking, what are weekly options.

Well, in 2005, the Chicago Board Options Exchange introduced ЂњweeklysЂќ to the public. But as you can see from the chart above, it wasnЂ™t until 2009 that the volume of the burgeoning product took off. Now ЂњweeklysЂќ have become one the most popular trading products the market has to offer. So how do I use weekly options? I start out by defining my basket of stocks.

Fortunately, the search doesnЂ™t take too long considering weeklys are limited to the more highly-liquid products like SPY, QQQ, DIA and the like. My preference is to use the S&P 500 ETF, SPY. ItЂ™s a highly-liquid product and IЂ™m completely comfortable with the riskreturn SPY offers. More importantly, IЂ™m not exposed to volatility caused by unforeseen news events that can be detrimental to an individual stocksЂ™ price and in turn, my options position. Once IЂ™ve decided on my underlying , in my case SPY, I start to take the same steps I use when selling monthly options.

I monitor on a daily basis the overboughtoversold reading of SPY using a simple indicator known as RSI. And I use it over various timeframes (2), (3) and (5). This gives me a more accurate picture as to just how overbought or oversold SPY is during the short-term. Simply stated, RSI measures how overbought or oversold a stock or ETF is on a daily basis.

A reading above 80 means the asset is overbought, below 20 means the asset is oversold. Again, I watch RSI on a daily basis and patiently wait for SPY to move into an extreme overboughtoversold state. Once an extreme reading hits I make a trade.

It must be pointed out that just because the options I use are called Weeklys, doesnЂ™t mean I trade them on a weekly basis. Just like my other high-probability strategies I will only make trades that make sense. As always, I allow trades to come to me and not force a trade just for the sake of making a trade. I know this may sound obvious, but other services offer trades because they promise a specific number of trades on a weekly or monthly basis.

This doesnЂ™t make sense, nor is it a sustainable and more importantly, profitable approach. Okay, so letЂ™s say SPY pushes into an overbought state like the ETF did on the 2 nd of April. Once, we see a confirmation that an extreme reading has occurred we want to fade the current short-term trend because history tells us when a short-term extreme hits a short-term reprieve is right around the corner. In our case, we would use a bear call spread.

A bear call spread works best when the market moves lower, but also works in a flat to slightly higher market. And this is where the casino analogy really comes into play. Remember, most of the traders using weeklys are speculators aiming for the fences.

They want to take a small investment and make exponential returns. Take a look at the options chain below. I want to focus on the percentages in the far left column. Knowing that SPY is currently trading for roughly $182 I can sell options with a probability of success in excess of 85% and bring in a return of 6.9%. If I lower my probability of success I can bring in even more premium, thereby increasing my return. It truly depends on how much risk you are willing to take.

I prefer 80% or above. Take the Apr14 187 strike. It has a probability of success (Prob.

OTM) of 85.97%. Those are incredible odds when you consider the speculator (the gambler) has less than a 15% chance of success. ItЂ™s a simple concept that for some reason, not many investors are aware of. One Simple System to Win Nearly 9-out-of 10 Trades. Regular investors dream about these kinds of opportunities Ђ“ but few ever believe theyЂ™re real.

Like dragons, the idea of making money on nearly 9-out-10 trades seems the stuff of legendЂ¦ or if real, reserved exclusively for the marketЂ™s slickest traders. Yet, itЂ™s very real. And easily within the reach of regular investors.

You can learn all about this safe, simple strategy Ђ“ and the next three trades shaping up right now Ђ“ by clicking this link here. Slay your own dragon Ђ“ Go here now. . Finally, a Proven Trading System for Weekly Options That Consistently Delivers Results! Built in money management.

Easy to execute trades. Enjoy the Benefits of the System. Our proven, proprietary weekly option trading system takes the guesswork out of option trading. The system only trades two days a week. If conditions are optimal and the system gives a signal to trade, a credit spread position is initiated on weekly options that expire in the next few days.

These trades have the potential to make anywhere from 5% and greater weekly returns. What is the "System," and What Can It Do for You? The System is a proprietary set of trading rules that have been tested and proven over time to provide consistent results. The System takes many different aspects into account before signaling a trade including Market Volatility.

Market Sentiment. Option Values. Market Momentum. Probability of Winning. Plus a few key components we can only reveal to our members.

​ When a Signal is given, our staff identifies the proper trade based on the System’s Rules. We then share that trade with our members. We think you'll agree, our Track Record speaks for itself!

By Subscribing to Our Service You Will Receive All Trades Revealed by the System. Unlimited Access to Our Members Only Area. Unlimited Email Access to Our Traders If You Have Questions.

Weekly Updates. 100% MONEY BACK GUARANTEE. We are so confident in our System, if there is a single losing trade in your first month of membership, we will gladly refund your membership fee! This is far and away the best system I have ever used, and I have spent several thousand dollars on others. I’ve put on 5 trades so far..all winners. Thank you!! I have tried many systems that did not work for me. Yours is truely a great program. I have not traded it yet with money, only paper traded it. It is working out excellent! The results have been great. Looking forward to your upcoming notification emails. I have been trading this method with great results so far. I really like it. Not only is it effective, it fits my trading style in many ways, including the important mental aspects of trading. © 2016 Weekly Trading System. All Rights Reserved. trading weekly options Our unique strategy offers alerts and trade ideas four times per month, specializing in weekly options. The primary objective is positive returns on a consistent basis. Short-term investment ideas targeting double-digit results, best in the industry for weekly options. A great majority of our newsletter trade ideas are indeed profitable. Weekly options are not easy to trade, but our proprietary spread strategy has been proven to work on a consistent basis. However, please understand there will be losses. Ups & downs are inevitable. However, at the end of the day, at the end of the month, our portfolios will prevail with bottom line results far greater than other slow-paced strategies. A majority of the special trade ideas here are option spreads, buying and selling credit spread and debit spreads. The goal is to maintain consistent ideas while keeping risk to a minimum. Research is the basis of each & every trade idea. Market conditions, stock valuations, option volatility, and upcoming events are just some of the focal points of the weekly research. Expert analysis has led to excellent trading results. WEEKLY OPTIONS STRATEGY. Both bullish and bearish option positions may be taken. The intention is to offer profit strategies during long broad market rallies that last months or years. This newsletter also intends to profit during sharp or dramatic downturns in the market. Some of the best trade ideas have been during tumultuous times, when the market is dropping considerably. That is often when profits tend to outperform all expectations. Bottom line this newsletter’s primary weekly options strategy is to profit during up markets AND down markets. As seasoned option traders, this newsletter expertise lies in analyzing fundamental indicators, reviewing technical charts, studying historical volatility, and understanding weekly economic reports. Analyzing new information helps us predict short-term moves in individual stocks. These weekly trading strategies are now passed on to subscribers only. The best short-term trading ideas. Expert weekly options trading alerts, proven strategies for today’s markets. Stock options, derivatives of the underlying equity, are the focus from the weekly options list. Weekly options expiration occurs each Friday of the week. Option weeklys provide an opportunity for traders and investors alike. Investors may choose to buy or sell puts to protect a stock position. Fund managers may choose to buy index options to protect their entire portfolio. Traders may choose to buy or sell weekly options based on upcoming news or earnings announcements. Determining the right option trading strategies and specific stock to target has become an integral part of this weekly investment newsletter. Choosing the best stock to trade has been a key element in this newsletters success! This is something this newsletter will excel at. One new excellent trade recommendation per week is offered. Sign Up for FREE Lifetime access to our blog and trading statements! I decided to create this website knowing firsthand the struggles most retail traders go through during the initial learning process. I also know many new traders have exhausted their accounts early on and never get the chance to try again. So, my vision for this website is not to prove the skeptics wrong. It’s to empower you, the retail trader, to educate yourself on trading options with a primary focus on weeklys. It’s because I lived through the struggles that I now know the endless possibilities because I’ve lived those too! My hopes are that when you read through my site and see my personal trades and trading statements, you will not allow skepticism to enter your mind when it comes to trading. I want you to believe in yourself and your ability to be a successful trader! I did not foresee the creation of this site. However, over the years I’ve stayed busy teaching people the fundamentals of day trading the Emini Markets. Some of these conversations led to the discussion of my option trades which, in turn, led to many requests for such a site. As a result, TradingProof. com was born. At this point, you may be asking yourself “Who is this guy? What makes him an expert?” Well, my name is David Marsh. Some of you may already know of me through my original site EminiTradingStrategies. com. I started trading options back in the early 1990’s. In those days, the internet was still pretty new to the trading world. I was introduced to options around 1993 when I attended my first class in Chicago, IL, and a second in Dallas, TX. Knowing absolutely nothing about options, learning options in a classroom environment was incredibly tough. So much so, that I walked out after class frustrated and confused. Today, everything I learned back then for a hefty fee can be learned simply and at no cost thanks to the internet. Over the next several years I traded options with limited success. I had some good trades and I had some bad trades. Overall though, I was losing money. For the most part, I abandoned options trading in the late 90’s and focused more on day trading. I became very successful day trading equities, and eventually the ES, S&P Emini Futures. Weekly Options eventually became available in 2005. I, like many traders, didn’t even know about weeklys back then. But hey, what did I care? I was primarily trading the ES anyway. Around that time, I started building up my long term retirement fund using mainly stocks and mutual funds. I had a close friend manage most of that for me while I stuck with what I knew day trading. Then, in 2010, I started trading weekly options on the RUT and SPX. Like most people do when they start trading options, I traded vertical spreads and iron condors. That was working great until I lost my A$$ on a huge iron condor trade. That was a tough lesson learned! It was about 2011 that I then began trading butterfly spreads and diagonal spreads. That, in turn, is what eventually led me to the weekly options success I enjoy now. I have been using my current strategy, the same strategy I use on this blog, for over 18 months with great results. Some of you may think that doesn’t seem like a lot of time. However, keep in mind weeklys are still relatively new, and trades are taken each week as opposed to once a month thus offering more opportunity to initiate trades. My strategy is to build my retirement money with Weekly options and take those profits and reinvest in long term dividend paying stocks. How to Trade Weekly Options. By Larry D. Spears , Contributing Writer , Money Morning &bull April 26, 2012. Start the conversation. To loosely paraphrase Robert Burns, the best-laid plans of mice and stock traders sometimes go awry. But with some creative use of weekly options, that doesn't necessarily mean you have to take your losses. Here's an example of what I mean. Just under two weeks ago, we suggested a "short iron condor" as a possible short-term strategy for playing the release of first-quarter earnings reports for some of the leading financial stocks, using J. P. Morgan Chase (NYSE JPM) as a specific example. As it turned out, JPM's earnings handily topped the estimates – coming in at $1.31 per share versus a projected $1.14, on revenues of $26.7 billion ($24.4 billion had been predicted). That should have sent the stock nicely higher, giving us a quick gain on our condor – and JPM did indeed try to rally – but then our best-laid plans took a wrong turn. The broad market turned sharply lower that Friday, with the Dow Jones Industrials dropping 136.99 points and the S&P 500 losing 17.31, dragging J. P. Morgan along with it. Long story short, over the next five days JPM see-sawed higher and lower – but save for a few moments on Thursday, it never moved out of our $43-$45 maximum-loss range. The trade went south. But had you been on your toes, you would have noticed this about JPM In spite of the pressure from a weak overall market, the stock demonstrated strong technical support at the $43-a-share level. Both times it tested $43, it bounced quickly back – a pattern it repeated Monday, when it ignored the broad market sell-off and rapidly rebounded from a lower gap opening near $42. The rest of this week, it's again traded solidly above $43 a share. In fact, a quick look at the long-term chart shows that – with the exception of Monday – JPM hasn't closed below $43 since March 12th. And, given the healthy earnings and a "powerful buy" rating last Thursday from Zacks Investment Research, it probably won't close below that level again. At least not in the next week or two… That's important because J. P. Morgan is one of the 60 or so individual stocks (plus 30 indexes and ETFs) on which "weekly" options are traded. It's through the use of these relatively new trading vehicles that we can quickly recover the loss we just suffered on our JPM iron condor trade. A Weekly Options Primer. Weekly options on equities are less than two years old, but they are already highly popular for a variety of purposes, ranging from hedging against short-term pullbacks to speculating on quick price reversals, either up or down. Perhaps the most popular strategy, however, is selling "weeklys" to generate a steady income stream – or, in our case, offset earlier short-term losses. For those unfamiliar with them, weekly options were introduced by and trade on the Chicago Board Options Exchange (CBOE). They come in both puts and calls, like regular monthly or quarterly options, and have a range of strike prices surrounding the current price of the underlying stock. However, they have a lifespan of just eight calendar days – being introduced on Thursday and expiring on Friday of the following week. For trading purposes, they're designated as Wk1, Wk2, Wk4 and, if a month has five Fridays, Wk5. No weeklys are created expiring on the third Friday of the month since that's when the regular monthly options expire. Now back to our loss-recovery strategy. All it involves is selling an out-of-the-money weekly option representing a move opposite the price move you expect in the underlying stock. In other words, if you think the stock is likely to fall in the next week, you sell the weekly call option – or, if you think the stock price will rise , you sell the weekly put option . If the stock price moves as you expect ­- or even stays flat – the time value in the option premium will quickly erode, the option will expire the following Friday and you'll get to keep the entire amount you received for selling it. The risk, of course, is that the stock will move counter to what you expect, putting the option you sold in the money and forcing you to buy it back before expiration – though, given the rapid time-value erosion, that doesn't necessarily mean you'll take a loss on the trade. The risk is also mitigated by the option's short lifespan – as well as by the fact that you should never use this strategy unless you have a solid reason to think the stock will move as expected, such as JPM's strong technical support at the $43 level. Even so, you'll have to post a margin deposit to do the trade, the amount of which you can estimate by using the CBOE's "Option Margin Calculator. " ( Note If you want to avoid posting the full margin requirement, you can cover part of it by buying an option of the same type, but further out of the money. That option should cost only pennies, and you'll only have to post the difference between the two strike prices, less the net premium you receive for the option you sell.) Using Weekly Options to Recover Your Losses. Had you been aware of this play when you closed your JPM short iron condor last Thursday, you could have immediately sold the JPM AprilWk4 $43 put. With JPM at $43.22, that put was trading around 55 cents, or $55 per full 100-share contract, enough to offset nearly all of the 82-cent loss you took on the condor. The margin requirement for the trade would have been about $842, which seems a bit steep – but if you get to keep the full $55, that's a return of 6.5% in just eight days. Obviously, it's too late to do that now. By the time you read this, the AprilWk4 put premium will likely be less than a quarter of last Thursday's levels – even if JPM's price hasn't changed at all. But that's the nice thing about weekly options – you get another chance to sell the appropriate JPM MayWk1 put today or tomorrow. Merely adjust the strike price accordingly, based on the underlying stock price at the time. Then, keep repeating the strategy every week. You'll quickly recover your full condor loss, after which you can start generating a regular weekly income from J. P. Morgan – without even owning the stock. As an alternative to buying back the put if JPM does move against you, you can choose to let it be exercised, forcing you to buy the stock at $43 a share – less than where it's trading now. You can also use this strategy with any of the other stocks on which weekly options trade, generating income from them for far less than you'd have to invest to actually buy the shares. Zacks Releases Four Powerful "Buy" Stocks Tenneco, JP Morgan Chase, Mattress Firm Holding and Rush Enterprises Wikipedia Weekly Options Strategies Has Placed 19 Trades This Year And Counting. Showing The Complete Trade History Of Each One. Let Our Options Algorithm Do The Heavy Lifting. Our #1 priority is you, the investor. We believe in our product and hold ourselves to the highest standards. We truly care about your account as much as you do, which is why we do our best to offer a high-end options trading system. Our weekly options strategy has gone through a rigorous testing process which includes trading it live in our own accounts. Visit our trade list to see details on every trade placed since going live in January 2016. Past performance is not indicative of future performance. View Details On Every Trade Placed Since Inception. Full transparency on every trade placed since going live. Statements are available on request for verification purposes. Past performance is not indicative of future performance. Trading futures & options involves substantial risk of loss and is not suitable for all investors. Since Going Live Profitability. The following represents returns seen using our Weekly Options Strategy since we began trading live. Assumes a $10,000 account trading 1 options contract per trade. Includes $30 commission per round trip trade. Does not include our one time licensing fee. YTD Performance 2016. Past performance is not indicative of future performance. Since Going Live Distribution Of Trades. Since going live, the following graphics show our weekly options strategies distribution of Full Profit , Partial Profit or Loss . Past performance is not indicative of future performance. Since Going Live Per Trade WinLoss Rates. The following data summarizes the winloss record of the weekly options trading system. Past performance is not indicative of future performance. Join Others Using Our Weekly Options System. If you are tired of letting your emotions get in the way of your trading, consider our fully automated trading system. Since Going Live Monthly Breakdown Of Results. The following is a summary of every trade placed since we went live. Each month, only $10,000 is used for trading. This means that any gains above $10,000 can be removed from the account or gains could be reinvested in $10,000 increments. February 2016 Results. The volatility seen early in the month enabled us to collect a high amount of premium with each option sold, particularly during the early weeks of February when vol was still high. Past performance is not indicative of future performance. The S&P 500 had an incredible March, rallying over 6%. Our options trading system managed to do very well in spite of a drop in volatility and therefore premiums collected. We beat the broader index by just over 1%. Past performance is not indicative of future performance. A solid performance during April netted a gain of about 3.00%. Past performance is not indicative of future performance. A solid performance during May netted a gain of about 4.60%. Past performance is not indicative of future performance. June is not over yet, but it is looking like we might have our first losing month since going live. As of 62716, the weekly options system is down slightly. We survived the Brexit vote, so that’s a bit of silver lining. Past performance is not indicative of future performance. Since Going Live Maximum Draw Down. The following represents the Maximum Closing Trade to Closing Trade Draw Down seen using our Weekly Options Strategy since we began trading live. Assumes a $10,000 account trading 1 options contract per trade. Includes $30 commission per round trip trade. Does not include our one time licensing fee. Maximum Draw Down How Should This Data Be Used? Past performance is not indicative of future performance. Account Setup & Minimum Requirements. The following is a summary of account types supported, automated trading options & account minimums. Weekly Options Strategy Key Features. Automated Options Trading. Income Generation Algorithm. Traded By Developer. Traded Live Since January 2016. Trades During Bull & Bear Markets. Utilizes Bearish Call Spreads. Utilizes Bullish Put Spreads. Complete Trade History Posted. No Pattern Day Trading Requirements. Trades Credit Spreads To Limit Losses. Back-Tested 15 Years. High Probability Directional Algorithm. Limits Emotions From Trading. 100% Technical Trading System. No Discretionary Trades. Monitor Trades With Smart Phone App (Apple & Android) Absolutely No Trading Experience Required. Statements Available Upon Request. Trades S&P 500 Emini Options. Trades The Most Liquid Futures Options. Very High Per Trade Win Rate. Has Outperformed The S&P 500 Since Going Live. Multiple Brokers To Choose From. Product Of Quant Algorithms. Minimum $10,000 Required. Get Started Trading Options On Auto Pilot. The following five steps can usually be completed within 1 to 2 business days. It all starts by filling out our Contact Us Form . Reach out to us through the contact us form or send us an email. We will be happy to answer any questions you might have. Step 2 Auto-Execution or Text Alerts? You can either setup an account with one of our auto-execution brokers, or receive all trade alerts through text messages. Decide which option is best for you. Text alerts will be sent every time we enter a new trade. You will know exactly which option we sold and can place the trade in your own account. This does require a futures enabled account which allows for option spread trades. Subscribe to our service and begin receiving new trade text alerts immediately. If you elect to have a broker auto-execute the trades, we will send them an on boarding email and they will reach out to you to begin account setup. Step 4 Trading Begins. Join Others Using Our Weekly Options System. If you are tired of letting your emotions get in the way of your trading, consider our fully automated trading system. Past performance is not indicative of future performance. Futures & Options trading involve a substantial risk of loss and is not appropriate for everyone. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. trading+weekly+options. Narrow Your Search. Tech Industry (112) Computers (78) Tech Culture (68) Mobile (67) Internet (48) Security (9) Phones (8) Software (8) Applications (5) Gadgets (5) Audio (4) Digital Media (4) Gaming (4) Sci-Tech (4) Smart Home (4) Online shoppers are liking those speedy checkout options. Manuel BlondeauCorbis via Getty Images Apple Pay so far hasn't inspired people to burn their wallets, but there's one type of newer digital payment that's gaining traction. Visa on Thursday. By Ben Fox Rubin 06 April 2017. iPhone 7 storage options Why 32GB is likely not enough. 149 Close Drag Autoplay ON Autoplay OFF Last September, Apple finally did away with the abysmal, 16GB model in its iPhone lineup. Starting with the iPhone 7, you have the option of 32GB, 128GB. By Jason Cipriani 23 March 2017. Apple's iPhone 7 and 7 Plus cases add fetching new color options. Enlarge Image Apple The iPhone wasn't the only Apple product that got a color update today. Along with the new red iPhone 7 and iPhone 7 Plus, Apple added new colors to its line of silicone and. By David Carnoy 21 March 2017. Accused hackers make millions off insider trading info. James MartinCNET The US district attorney charged three Chinese citizens for hacking two law firms and making more than $4 million from the information they allegedly stole. The three men. By Alfred Ng 28 December 2016. Spotify Singles is a new weekly playlist full of covers and originals from your favorite artists. Jason Bahr, Getty Images At Spotify, Mondays are for Discover Weekly, Fridays are for Fresh Finds, and now Wednesday are for Singles. Spotify Sessions Singles is a new weekly playlist. By Xiomara Blanco 30 November 2016. Walmart checking out more digital payment options. Francis Joseph DeanCorbis via Getty Images Walmart appears to be diving deeper into digital payments. Last week, the retailer unveiled a partnership with JPMorgan Chase to bring the bank's. By Ben Fox Rubin 08 November 2016. Mini NES is gone? Here are some Nintendo backup options. Bad news The Mini NES is impossible to find. This year's hot retro gaming gift might be a pretty tough thing to track down outside of getting ripped off on eBay. If you can't get your hands on a. By Scott Stein 11 November 2016. Catch this gold Pikachu Pokemon trading card for $2,000. Enlarge Image The Pokemon Company While the Pokemon Trading Card Game may have been put aside for more modern endeavours, this 20 year celebratory card might be that one final must-have for the. By Adam Bolton 26 October 2016. Spotify's 'Discover Weekly' mixtapes get some kid brothers. Spotify has always wanted to put all the music in the world at your fingertips. Now it's trying to figure out the best ways to hunt out tracks you actually like. On Tuesday, Spotify launched. By Joan E. Solsman 27 September 2016. Spotify rocks the vote with weekly blasts of election videos. Enlarge Image Spotify The sprint to dominate music streaming isn't the only race commanding Spotify's attention. The streaming music service on Tuesday launched a weekly series of video and. By Joan E. Solsman 13 September 2016. © CBS Interactive Inc. All Rights Reserved. Ten Reasons To Trade Weekly Options. Many investors and traders believe options to be very risky and weeklies to be even more risky. I do not agree. I believe options are neutral. They are simply tools that can be used to express trades. Options can actually control risk and position sizing if they are used in the right way. Of course, the dangers are there if they are used for gambling or 'Hail Mary' type trades. Weekly options can be imbedded into existing trading methods with the right position sizing and risk per trade to enhance performance. The main key is to trade your size. If you are trying to capture intrinsic value on Apple in-the-money - options trade the same size you would with stock, if you trade 100 shares of Apple then trade one Apple contract. If you are playing for Gamma with out-of-the-money options then risk the same per trade as you would with stock. If $500 is the most you can risk per trade with stock then buy little more than $500 of options when you play for Gamma. If you want to be aggressive and buy $1,000 worth of out of the money options then you would have to cut your losses at 50%. The key is to use weekly options responsibly. We still have to manage risk. We still have to have the right position sizing. Above all we must have the discipline to stay within the rules of or trading plan and stick to our method. Here are the ten reasons I like to trade weekly options 1. Weekly options provide asymmetric trades with a built in loss at the contract size but an unlimited profit potential that can grow with the underlying equity that it is based on. 2. Weekly options allow us to own the move of 100 shares of our favorite stock for a few thousand dollars instead of tens of thousands of dollars that the stock actually costs by playing in-the-money options for maximum delta and capturing intrinsic value. 3. Out-of-the-money weekly options allow us the opportunity to capture triple digit gains on our capital at risk in a short period of time by playing for gamma. 4. Playing long option strangles on weekly options allows us to capture short dramatic moves on the stock in either direction and we do not have to know which way it will move. This is a very cheap play compared to using monthly options. 5. I have always liked weeklies better than monthlies because it is more difficult to overcome time premium in the monthlies to get to the delta capture and intrinsic value. Weeklies are short and to the point you can get in-the-money and start capturing delta and intrinsic value the same day you buy them. 6. Most weekly options provide wonderful liquidity around the at-the - money strike prices. Unlike many monthly options that cost you several percent to get in and out of due to light volume, the majority of weeklies have a tight bidask spread. 7. For those inclined to write options the weeklies give you the chance to write very high probability bets each week with the far out-of-the-money options. Especially on the famous Apple 'pin' Friday where the price tends to stay put and all the out-of-the-money options have the life span of fruit flies. 8. Weekly option puts are excellent and cheap hedges to cover other positions like long term holdings of a long stock in an investment account. 9. I like to express trend following trades with weekly options by rolling the options week to week to express a longer term positions I want to hold. I can use in-the-money-options for aggressive delta capture or out-of the-money options for larger position sizing and very aggressive gamma capture. 10. Weekly options allow smaller traders to manage position sizing better than with stocks or regular monthly options. With an understanding of the option Greeks they are very powerful tools for risk management and position sizing. Do you use weekly options? We'd love to hear about your experiences. Or, do you have any questions on how weekly options work? Post them below for Steve Burns. trading weekly options Short-term trade alerts & weekly options strategies. Directional market guidance using weekly options. New alerts emailed each Friday morning. Our newsletter & trade alerts offer real-time stock market updates and trading recommendations. Our objective is to provide thought provoking trading ideas to investors looking for consistent results. We offer option trading statistics, short-term stock market directional trade reports, historical option volatility insight, and our general expertise on current market situations. Looking for a supplement to your trading knowledge? You’ve found it. Looking for information to base your decision-making process on? You’ve found it. Looking for historical options volatility data & opinions? You’ve found it. We specialize in researching weekly options data. Depending on markets conditions, weekly options can be an instrumental tool to both long-term position traders as well as short-term momentum traders. Our expertise lies in analyzing technical and fundamental indicators in order to predict short-term moves in individual equities. Over the years we’ve eliminated strategies that did not work, and we’ve learned to exploit strategies that continue to produce positive results. SHORT-TERM TRADE IDEAS. The Weekly Options Trader is a short-term supplemental addition to your trading knowledge. View our trade recommendations and decide if the trade is right for you. Our subcribers have been very happy with our percentage gains. The primary goal is to provide valuable stock market information and insight for the individual investor, using weekly options as our tool. Many investment newsletters focus on the long term investing. Our newsletter is the only one to focus on near-term moves in individual equities. We are not risk-adverse. Weekly options are highly volatile and carry with them a high degree of theta (time decay). However, receiving the right information and establishing the optimal options position can lead to highly profitable results.