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Trading Weekly Options: Pricing Characteristics and Short-Term Trading Strategies, + Online Video Course



Trading Weekly Options: Pricing Characteristics and Short-Term Trading Strategies, + Online Video Course

Russell Rhoads

ISBN: 978-1-118-61612-3 January 2014 272 Pages


A comprehensive resource for understanding and trading weekly options

Weekly options are traded on all major indices, as well as high volume stocks and ETFs. They continue to surge in popularity, accounting for as much as twenty percent of daily options volume. And while existing options strategy can be used with weeklys, they are particularly conducive to premium selling strategies and short-term trades based on a news item or technical pattern. With this timely guide, and its companion video, you'll learn exactly how to use weeklys to make more money from option selling strategies and how to make less expensive bets on short-term market moves.

Written by Russell Rhoads, a top instructor at the CBOE's Options Institute, Trading Weekly Options + Video skillfully explains the unique pricing and behavioral characteristics of weekly options and shows how to take advantage of those unique features using traditional option strategies.

  • The first book and video combination product focused solely on weekly options
  • Outlines the most effective trading strategies associated with weekly options, including taking advantage of the accelerating time-decay curve when an option approaches expiration
  • Filled with the practical, real-world insights of author Russell Rhoads, an expert in this field

Created with both the experienced and beginning option traders in mind, this book and video package will help you make the most of your time trading weekly options.

Preface ix

Acknowledgments xi

Chapter 1 Introducing Weekly Options 1

Chapter 2 Short-Term Index Options 9

Chapter 3 Weekly Options on Equities and Exchange-Traded Products 19

Chapter 4 Option Pricing Factors and Short-Dated Option Contracts 25

Chapter 5 Time Decay and Short-Dated Options 31

Chapter 6 Implied Volatility and Weekly Options 39

Chapter 7 Developing Your Trading Plan 55

Chapter 8 Long Option Trades 61

Chapter 9 Short Option Trades 69

Chapter 10 Covered Calls and Buy-Writes 83

Chapter 11 Hedging with Short-Dated Options 97

Chapter 12 Bullish Spread Trading 113

Chapter 13 Bearish Spread Trading 131

Chapter 14 Neutral Spread Trading 147

Chapter 15 Split Strike Long Spreads 165

Chapter 16 Calendar Spreads 187

Chapter 17 Diagonal Spreads 201

Chapter 18 Trading Earnings Releases with Short-Dated Options 215

Chapter 19 Leveraged Exchange-Traded Products 235

Chapter 20 VIX-Related Exchange-Traded Products 243

About the Video 247

About the Author 249

Index 251