OPTIONS INTERMEDIATE MODULE

The Options Intermediate courses is a key milestone to master to advance to more complex strategies.

Options Expiration and Weekly Options

The impact of time  decay on Option prices in the final week before expiry is an exciting  phenomenon. We know time decay is exponential, but how do the Greeks actually  behave during this time. This course on Trading Options at Expiration takes a deep dive using Apple (AAPL) Options Weekly series. All  Weekly Option series open for trading on Thursday morning and trade until the  following Friday. We follow an AAPL Short Straddle trade from Thursday morning  until deep into the following week. The Short Straddle is explained in detail  in this course; however, the reader may also view the Straddles and Strangles  course, to get a more complete understanding of this type of trade. The Greeks  are on steroids during the final week of an Option's life.

Option Greeks behave  abnormally during the final week, especially the At-The-Money Options. It  should be intuitive that these Options are experiencing an enormous amount of  uncertainty insofar as to whether they will end up in-the-money or not. What  may not be clear is how the Greeks behave during this time which ultimately  impacts Option prices.

Course Details

Why are Weekly Options special

How much monitoring of positions is required

Role of Gamma in the final week

What kinds of trades are suitable at this time

What Time Decay strategies work in the final week

Challenges and Pitfalls of Weekly Options

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