Weekly options

 We love them especially in todays tariffs mined markets

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Weekly options are short-term options contracts that expire every week, typically on Fridays. They are used for quick trades, income generation, hedging, or speculative bets on short-term price movements.

Let’s break this down using a popular ETF example:

📌 SPY — the SPDR S&P 500 ETF Trust — tracks the S&P 500 Index and is the most actively traded ETF with a robust weekly options market.

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🔍 What Are Weekly Options?

🧠 Definition:

Weekly options are listed options contracts that have one-week lifespans, expiring every Friday (except holidays). They work exactly like monthly options but with shorter time horizons.

🔄 Compared to Monthly Options:

Feature	Weekly Options	Monthly Options
⏳ Expiration	Every Friday	3rd Friday of the month
🧾 Duration	5–7 days	~30 days
🎯 Strategy	Short-term	Medium/long-term
⚠️ Risk	Higher	Lower (generally)

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🎯 Why Traders Use Weekly Options on ETFs like SPY

1. Speculation 📈

• Expecting the S&P 500 to rise after a strong earnings season?

• Buy a SPY call option expiring this Friday.

• Short-term bets with high leverage.

2. Hedging 🛡️

• Concerned about market drop this week?

• Buy SPY put options to protect portfolio downside.

3. Income Generation 💰

• Own SPY shares? Sell covered calls weekly to collect premium every Friday.

4. Event-Based Trading 🗓️

• Great for playing:

  • Fed meetings

  • Jobs reports

  • CPI releases

  • Earnings seasons (especially on sector ETFs)

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🔧 Example Trade: Weekly SPY Option

Suppose it's Monday, and SPY is trading at $430.

Option	Type	Strike	Expiry	Premium (est)
SPY 430 Call	Buy	$430	Friday	$2.10
SPY 425 Put	Buy	$425	Friday	$1.60

• Buying the 430 Call gives you the right to buy SPY at $430 by Friday.

• Your break-even is $432.10.

• If SPY hits $435 by Friday, your profit is:
  (435 - 430 - 2.10) x 100 = $290

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🔥 Pros of Weekly Options:

• 📉 Lower upfront cost (shorter duration = cheaper premium)

• 🧩 More flexibility (tailor strategies to weekly news/events)

• 📆 Frequent opportunities (52 expiration cycles per year)

⚠️ Cons:

• ⌛ Rapid time decay (theta kills value quickly)

• 🔥 High risk (especially naked options)

• 📈 Need precise timing and price predictions

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🧠 Summary:

Weekly options, especially on ETFs like SPY, offer traders speed, precision, and flexibility. But they demand sharp timing and risk control.