Weekly options

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Weekly options (or weeklies) are short-term options contracts that expire every week, typically on Fridays. A call weekly option gives the buyer the right (not obligation) to buy an underlying asset at a specific price (strike price) within one week.

They function like regular call options but have very short expiration periods, making them popular for short-term strategies, speculation, and event-based trading.

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🧾 Key Characteristics of Weekly Call Options

Feature	Details
Expiration	Every Friday (except standard monthly expirations)
Duration	5 trading days or less (issued on Thursday or Friday of prior week)
Strike Price	Same structure as regular options (you choose)
Premium	Typically lower cost, but faster time decay
Liquidity	High on major ETFs (e.g., SPY, QQQ) and large-cap stocks
Leverage	High—small moves in price can create large % gains or losses

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🧠 Example

• You buy a weekly call option on Apple (AAPL):

  • Strike Price = $180

  • Expires = This Friday

  • Premium Paid = $1.50 per share → $150 total (100 shares per contract)

If AAPL rises to $185 before Friday:

• Your call is $5 in-the-money

• Profit = $(\$5 - \$1.50) × 100 = \$350$

If AAPL stays below $180:

• Your option expires worthless

• You lose the $150 premium

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📈 Why Trade Weekly Calls?

Use Case	Advantage
Short-term speculation	Capture quick moves (earnings, news, market volatility)
Low-cost leverage	Control 100 shares for a small upfront premium
High ROI potential	Small price swings can return 100%+ if timed well
Income strategies	Sell weekly calls (covered calls) for recurring premium income

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⚠️ Risks of Weekly Call Options

Risk Type	Explanation
Time Decay (Theta)	Value drops rapidly as expiration nears, especially if out-of-the-money
High Volatility	Prices move fast—great for profits, but also for losses
All-or-Nothing	Expire worthless if not in-the-money
Not for beginners	Require precise timing and market insight

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🧠 Summary

Weekly call options are high-risk, high-reward tools best suited for active traders or event-driven strategies. They offer agile exposure to short-term price movements, but due to rapid time decay, they demand precision and discipline.