The Advantage of Weekly Options

The Weekly Options offer investors with a short term advantage that you can’t accomplish when you opt to use monthly options. Since weeklys are short-term in nature, investors may anticipate any risks that may come.

For example, you are betting that the EFG stock is going to move on the first week of the month as their earnings report is due that time. Capitalizing on your decision on buying or selling EFG monthlies may not be a good idea because three week investment is on bet. The advantage of weekly option, you are only going to risk one week’s worth of premium when you are proven wrong. Sooner, weekly options can still save you money and can make better income after you move to the correct one.

Yet, the monthlies’ open interest and volume is still higher than weekly options. Monthlys have better pinning action than weeklys. Pinning action usually happens when a price of stock goes up on its expiration day.

Disadvantages of Trading The New Weekly Options

Though weeklys has its advantages, it also has disadvantages. Weeklys’ duration and lifespan can be a disadvantage as well. There is no much time to fix mistaken investments. Strikes on this type of investment could not be easily adjusted. Also, weeklys strikes may not be good at all times. Some of the strikes will have very wide spreads which is not good for strategies that are short term.

In Wrap Up

Investors of weekly options should know its advantages and disadvantages – especially when getting involved in Gamma Scalping. Investors may earn easy money or loss a lot of money from this investments. Investors should have full understanding of what they are doing and the risks involve in order to be successful.

To be taught these ‘tricks’ to trading Weekly Options , go to this Gamma Scalping website and view my free video. It will teach an exceptionally down-to-earth manner for satisfactorily placing, managing, and ADJUSTING these types of trades.