What you'll learn:
- Learn all about Weekly Options
- What are the pluses and minuses of trading Weekly Options
- How does Time decay work on weekly Options
- Simulate the effects of time decay on the days before expiry
- What strategies are good for Weekly Options
- How do all the Option Greeks behave during the final days before an Options expiry
WEEKLY OPTIONS TRADING AND OPTION EXPIRATION DYNAMICS
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. 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. 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.
Most importantly, the lectures focus on the kinds of strategies that are ideal during the final two weeks before expiry. Although most strategies tend to focus on the most dominant Options characteristic during this time (Time Decay), the course also shows a couple of very interesting, very high reward strategies with very little risk.
What can you expect
What are Weekly Options and why are they special
What characteristics do Options have when they are very close to expiry
What kind of trades are suitable during this time
What sort of attention do you need to give to these trades
What kinds of traders are Weekly Options suitable for
What time decay strategies could work during the final week
The impact of the final weekend on Option prices
What challenges and pitfalls can you expect from Weekly Options
What role does the Greek Gamma take on during this time
And why does Vega whimper out during this time
And what about Delta and Theta - it's a total Greek-fest
WEEKLY OPTIONS ARE VERY EXCITING TO TRADE BUT MAKE SURE THEY ARE FOR YOU !!!
