Tag Archives: weekly options

Weekly Options Gamma Trade – Calling The Market a ‘Sissy’

With Weekly Options there is a little known option trading strategy that can provide consistent profits from markets that seem too wild and choppy to use the usual strategies like iron condors, calendars, and credit spreads. This strategy works best in crazy markets unlike the standard option income strategies such as the iron condor, the calendar spread, credit spread, etc.

One way to think of gamma scalping is to compare it to day trading – where the trader is looking to capture profits from quick little moves – however the difference here is that due to this strategy set up – most of the risk that is normally associated with day trading has been removed. Think of gamma scalping as a way to day trade without having to pick direction – taking away most of the risks that are normally associated with day trading.

When gamma scalping – the trader doesn’t care which way the market will be heading. Up or down, it doesn’t matter. We are properly set up to profit either way. And moves that are bigger make it better.

Once a profit is realized from a move either up or down, the trader locks in that gain using a super easy to implement adjustment method that not only captures that profit – but also re-sets the position to once again profit either way the underlying winds up going. This method allows the trader to continually grab – or ‘scalp’ – profits from the same trade position – and this can be done, over and over again on the same position.

How many times have you purchased a stock or option and wound up actually being right and seeing some profits – only to have the underlying immediately turn around and retreat back to it’s starting position wiping out all the profits?

Gamma Scalping eliminates this. And once again, using the method used to lock that profit in, positions the trade back to it’s starting point – where if the underlying continues moving in the same direction – or stops and returns back to where it came from – MORE profits can continue. This is a dynamic way to trade that can be low stress and even quite enjoyable.

For option income traders who are struggling in these especially volatile times trying to use the standard income trades like condors, credit spreads, and calendars, Gamma Trading is a good method to learn and consider using and adding to their collection of other option strategies.

And along with being profitable – trading this way using weekly options is actually quite an enjoyable way to trade too.

To be trained a much ‘better’ technique to trade the iron condor for monthly income, go over to this Weekly Options website for plain step-by-step blueprint on how to suitably place, manage, and ADJUST these trades.

Playing Weekly Options – Riding The Butterfly Spread Trade To Bring In Weekly Options Profits

One way to trade weekly options that could be considered ‘less risky’ – at least when compared to other similar ways of trading – is to go out and purchase a LEAP option – use that as the foundation for the trade – then start to sell weekly options against it – similar to how one might trade a covered call trade.

Trading LEAPS along with Weekly Options

When you break the word LEAPS down you find that it stands for: ‘long-term equity anticipation securities’. These trading vehicles can have life spans from a couple of months to many months and in some cases even years. Another interesting point regarding these particular trading vehicles is that in actuality they are not even ‘options’ – but in fact they are actually ‘securities’.

I once heard a professional option trader say that he thinks of LEAPS is that they are a way to ‘lease’ or ‘rent’ the underlying stock or etf being used instead of buying the actual stock. LEAPS are probably the closest thing you can find to benefit from the rise or fall in a stock without actually owning the stock itself – and you can do so with a great amount of leverage, at a far lower cost, and with a potentially much bigger return – or bang for your buck.

AAPL example using LEAPS and Weekly Options.

Let’s create an example where a trader decides to make a position in AAPL – but doesn’t have the amount of money needed to purchase the stock. What he can do instead is purchase an AAPL LEAP for far less that what the stock would cost – and still have the ability to take advantage of a move in the stock.

Another great weekly options strategy that can be used will LEAPS options is use them as a stock ‘surrogate’ for a covered call type of position. Instead of using the actual stock as the base position for a covered call play – a LEAP can be used – and then the option trader can sell weekly options against that leap – potentially every single week – bringing in premium much like a covered call type position only with much less capital at risk. Also, if you were to compare these two strategies against one another – you would most likely find that the return on investment is far greater when using the LEAPS weekly options version.

Teddy Baby is an option selling fanatic – mainly addicted about trading Weekly Options . Visit Weekly Options Website to find out more about his Undemanding Paint By The Numbers Design for riding the weeklys for consistent returns.

Using Weekly Options – Befriending The Butterfly Option Spread To Produce Weekly Options Beer Money

Call options started way back in 1973. The standard call options was born because of the CBOE or the Chicago Board Options. In the year 1977, the put option was established after the success of the standard call options. The put options became very popular. The trading volume really increases between years which shows how popular it become. The investors know how options works. The options has various functions for investors and generally, you may expect more increase as more people use it.

2005 was the launching of the new class option called Weekly Options by Chicago Board Options Exchange. After the prior options, weekly options is now available. Weekly options or “weeklys” are interchangeable terms use by the investors. “Weeklys” can be compared to monthly options by the investors. Weeklys only last for eight days while monthly options are not. You can get weekly options on Thursdays and it automatically expire after eight days. On the other hand, monthly options has better expirations which is on every third friday of each month. Investors of weekly options have the benefit of fifty-two expirations per year.

Options can be implemented with various strategies. Different tactics are currently available according to your chosen options. And what are the efficient tactics for the weeklys that investors may use? Strategies on monthly options can be also use for weekly options. You may notice that these techniques can be done four times monthly for weeklys. On the other hand, you can only apply this techniques for monthly options only once.

Many premium sellers like to take advantage of an option’s rapidly accelerating time decay curve on its final week of its life. When they use weeklys then it is surely a bonus on their part because they get to have many time decay curves. When monthly options are considered, investors get to be paid 12 times. Weeklys terms of payment is fifty-two times a year.

The strategies (like Weekly Options) that you can do with the weeklys are much the same strategies with the monthlies. You can market both put and calls option. You can also strategies like covered calls, spreads and condors. The three strategies are both good for weekly and monthly options. Obviously, weekly options has shorter time line than monthly options.

To watch more about this Weekly Options strategy, go to this Butterfly Spread Training Website for tons of free training videos, illustrations, and reports on how to fittingly put on, close, manage and adjust Weekly Options Strategies to generate a ongoing monthly gains.

Weekly Options – Credit Spread Income Every Week

This strategy has been a widely utilized strategy by most Weekly Options traders. Along with being one of the easier option trading strategies to understand, another reason newer option traders in particular gravitate to this approach is that it can take very little time to manage it while it is on. So if you are a credit spread seller, you don’t actually have to watch every tick in the stock market and monitor the changes all the time. You can just go out worry free yet assured of generating consistent income with the trade.

Iron condor, butterfly spread, and double diagonal are some of the option spread strategies that come along with the vertical spread which is highly fundamental for such option spread strategies. The usual thing for most beginners in weekly options trading is to head through this strategy right after they have ascertained the options and have decided to buy straight calls and puts, then covered calls, and then debit spreads.

Traders like to sell these weekly options spreads because when invested rightly the trades have a good probability of success and can allow the investor to still profit and ‘win’ without having to be precisely right with price direction and movement. The good news with credit spreads is that the traders can still earn a good monthly profit even if their prediction of the direction of the stock market could be mistaken.

Take a look at this example: our trader is bearish on the XYZ stock. XYZ is trading at a recent high and our trader believes that the stock will not move any higher over the next 30 days. With neutral to bearish circumstances, the trader can sell a bear call spread which is a call option vertical spread.

If our trader’s anticipation is correct, this means that the stock market heads to the negative direction and this Weekly Options spread trade wins. If the stock does absolutely nothing and just remains trading at it’s current level, this trade wins. What’s even great is that even if the direction of movement of the stock market is positive and the trader’s prediction is entirely incorrect, this trade can still win. But only if the movement is not too high. In other words, if the stock moves more rapidly than expected, this could lose the money. However, with appropriate management, this trade could still make earnings and it could still give benefits.

To understand how to fittingly trade Weekly Options Tactic for reproducible monthly returns, visit this Weekly Options website and watch our Free Video and read our Free Report.

Weekly Option – Using The Option Spread To Magically Create Weekly Options Cashflow

A neat strategy for Weekly Options traders who reckon that the underlying instrument they are working with will be range bound for the next 2 to 4 days or so of time is the butterfly trading strategy.

This theta positive derivative trading approach creates profits when the stock or index that is being traded remains within a trapped area on the graph or ends up on weekly options expiration day at or near the sold strikes of this trade.

Here is an representation of a weekly options butterfly spread position:

Buy 5 contracts of QQQQ forty four put. Sell ten contracts of QQQQ 46 put. Buy 5 contracts of QQQQ 48 put.

These trades can create rapid gains for the weekly options trader due to the fact that the short strikes of the trading position (the strikes which are sold) create so much premium into the investors account for the reason that they are being sold ‘at the money’ – which are the strikes that have the largest amount of time premium in them. Again, these options that are chosen exactly where the underlying is trading at frequently offer the most amount of option premium available.

Although you will notice a lot of versions of the butterfly technique, the two most frequent are the standard butterfly option spread trade which is set on for a debit, as well as the iron butterfly, which is put on for a credit. It is true that these two unique variations of the butterfly spread are certainly dissimilar, if you would look at the risk graph of one and then compare it to the other, they would come across spot on the same, and they actually act the same as well.

The weekly options butterfly option strategy is a ‘delta neutral’ method, meaning that derivative traders who apply this strategy either don’t have an view on marketplace direction or believe that the underlying stock being played will linger in its general location on the price chart for the period of the trade.

With the right understanding, Weekly Options can be a profitable, low stress, and pleasant investment means that doesn’t necessitate one to be chained to their computer screen worrying over every single tick of the marketplace all day.

Ted ‘The Spread’ Nino is an option selling zombie – particularly obsessed with riding the Weekly Options . Stop by his Weekly Options Training Site to catch more about his First-rate Uncomplicated Way to maneuver the weeklys for ongoing gains.