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Weekly Options on Stocks


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Weekly Options on Stocks

  #1 (permalink)
 TraderRich 
San Francisco CA
 
Experience: None
Platform: Thinkorswin
Trading: stocks, option, gold, ETF, Emini Es, Forex
Posts: 26 since Jan 2016
Thanks Given: 32
Thanks Received: 13

Hi Everyone,

Wondering if anyone is trading weekly options on stocks?

I have been trading weekly options for the past 6 months.

Would love to discuss and gather more insight from you

Thanks!!

TraderRich

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  #3 (permalink)
 ALC77 
Texas, USA
 
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TraderRich View Post
Hi Everyone,

Wondering if anyone is trading weekly options on stocks?

I have been trading weekly options for the past 6 months.

Would love to discuss and gather more insight from you

Thanks!!

TraderRich

I'd like to learn about options. Can you point me in a direction to learn options?

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  #4 (permalink)
 TraderRich 
San Francisco CA
 
Experience: None
Platform: Thinkorswin
Trading: stocks, option, gold, ETF, Emini Es, Forex
Posts: 26 since Jan 2016
Thanks Given: 32
Thanks Received: 13


ALC77 View Post
I'd like to learn about options. Can you point me in a direction to learn options?

Hey hey,

I am not a expert on option trading but here's my 2 cent. Hope it helps.

I dont know how long you have been with option but I think you should start understanding the building of option pricing and its influences, such as intrinsic value, extrinsic value, delta, gamma and implied volatility, if you haven't already. And then you need to figured out what style of option trading fits you best? Weekly, Monthly or several months outs and either you prefer short or long options. (from own experience, I think you should begin with long call or puts first) "OptionAlpha" ,https://optionalpha.com/, should have enough info to get you started. Your style will not come right away or through research. It will come from your trail and error as your trade more and you will find your own strengths and weaknesses.

Bottomline, if you are serious about trading, treat this like you're running your own business. Learn with an open mind and DO NOT GIVE UP!!! Proper mindset is key!

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  #5 (permalink)
Pugged
Waco Texas/USA
 
Posts: 12 since Mar 2017
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I can see this thread is a little old and doesn't reflect the market changes I noticed in the last year.

I scanned for weekly options inside TOS for ITM <25%, good volume, high ror. I was assigned a dog or 2 and augmented with looking at the long-term trend to see is it trending up or down? I did pretty good selling for premium and watching options simply expire. Then along about summer 2018 I was having to roll everything and ultimately was getting assigned 7 times out of 10 selections. And then ultimately I got burned this past October with margin calls and selling at a loss. I wiped out $30k worth of gains over a 2 year period by selling qqq at a tremendous loss. I was assigned, and could not roll out of precipitous declines. I also could not afford the margin interest.

Be very careful before buying (selling weekly puts) into this strategy. I'm taking a baby step right now, as I sold weekly puts one 1 security in my ira for the 1st time in a few months. It will expire friday, hopefully comfortably OTM. I'll follow my post with this result later in the week.

I haven't seen it described or discussed, but a sea-change occurred last summer that rendered the probability of ITM meaningless in large part. Some really strange undercurrents were afoot, imho.

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  #6 (permalink)
 TraderRich 
San Francisco CA
 
Experience: None
Platform: Thinkorswin
Trading: stocks, option, gold, ETF, Emini Es, Forex
Posts: 26 since Jan 2016
Thanks Given: 32
Thanks Received: 13


Pugged View Post
I can see this thread is a little old and doesn't reflect the market changes I noticed in the last year.

I scanned for weekly options inside TOS for ITM <25%, good volume, high ror. I was assigned a dog or 2 and augmented with looking at the long-term trend to see is it trending up or down? I did pretty good selling for premium and watching options simply expire. Then along about summer 2018 I was having to roll everything and ultimately was getting assigned 7 times out of 10 selections. And then ultimately I got burned this past October with margin calls and selling at a loss. I wiped out $30k worth of gains over a 2 year period by selling qqq at a tremendous loss. I was assigned, and could not roll out of precipitous declines. I also could not afford the margin interest.

Be very careful before buying (selling weekly puts) into this strategy. I'm taking a baby step right now, as I sold weekly puts one 1 security in my ira for the 1st time in a few months. It will expire friday, hopefully comfortably OTM. I'll follow my post with this result later in the week.

I haven't seen it described or discussed, but a sea-change occurred last summer that rendered the probability of ITM meaningless in large part. Some really strange undercurrents were afoot, imho.


Really thank you for sharing your experience with us but really sad to hear such big loss in last Oct =(. REALLY hope you will feel better soon!

Wondering if you can share some of your thoughts during that time?

1) Do you trade weekly every week? (DTE <5) If not, what's the DTE do you look for in your scans?

2) "summer 2018 I was having to roll everything"
Why did you decided to roll over since you're trading weekly? Why not close it for loss and start fresh again?

3) Did you change your trend outlook during October? (I.E, Change from selling puts to selling calls in October since it was bearish?)

Thanks!!!

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  #7 (permalink)
 Jaap8242 
Netherlands Amsterdam
 
Experience: Advanced
Platform: Sierra Charts
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Why would you trade weekly options?
In this video, Tom Sosnoff of Tastytrade gives his opinion on Weekly versus Monthly options.
https://tastytrade.com/tt/shows/market-measures/episodes/weekly-vs-monthly-08-19-2013

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  #8 (permalink)
 TraderRich 
San Francisco CA
 
Experience: None
Platform: Thinkorswin
Trading: stocks, option, gold, ETF, Emini Es, Forex
Posts: 26 since Jan 2016
Thanks Given: 32
Thanks Received: 13


Jaap8242 View Post
Why would you trade weekly options?
In this video, Tom Sosnoff of Tastytrade gives his opinion on Weekly versus Monthly options.
https://tastytrade.com/tt/shows/market-measures/episodes/weekly-vs-monthly-08-19-2013

Thanks for sharing the video! I have watched that videos once or twice before. I agree with their P.O.V about weekly but I don't quite agree on when they apply their monthly strategy on the weeklies. Since their strategy is heavily depended on DTE, if DTE change, the strategy needs to be changed as well.

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  #9 (permalink)
 
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 suko 
Kyoto, Japan
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If the market is rallying, the best trade on the board is the ATM QQQ call in the active week, followed by VXX puts.


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  #10 (permalink)
Pugged
Waco Texas/USA
 
Posts: 12 since Mar 2017
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I traded weekly options, specifically Puts, as if the strategy works ideally, you get paid every week. DTE less than/equal to 5. Puts bought otm, and stay otm, expiring worthless at week's end. I made a fair bit more than what I lost in october with the strategy.

with selling puts, you are taking in premium and trying to preserve it, you could take a loss quickly but those can be pretty significant due to short term volatility. You try and roll out and down for net credit if you have to roll. You don't sell puts wanting to own any stock generally, though you can sell calls against assigned shares, within limits. Last summer, all of a sudden, good stock's puts weren't expiring worthless at week's end, even though they were selected with a probability of ending up in the money less than 20%.

I sold 10 msft p103's on tuesday for about $220. Still at 106 before the open this morning. Expiry is tomorrow, and I want to stay otm. That way I keep the $220 and look for another (others) next week. An analogy to baseball comes to mind; this is a lot of bunting, taking a while to build up runs. Unfortunately, when it goes bad, it's like all you're doing is bunting and the other side is hitting home-runs on every pitch.

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