InvestorQ : How best can traders and speculators use these weekly options?
sara Kunju made post

How best can traders and speculators use these weekly options?

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Arusha Ray answered.
3 years ago
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Traders can also look at these weekly options as a means of earning short term returns. Today option writers have to write options in the beginning of the month and then typically wait till the end of the month to realize their return when the options expire worthless. Weekly options, on the other hand, allow these option sellers to monetize their positions faster and also churn their monies at a quicker pace. Normally, option writing is more common among well-informed traders. Small and retail investors keep away from options writing due to the higher margins it entails plus the higher time risk in writing monthly options. Weekly options largely obviate that risk. Weekly options have lower option premiums and that also lowers the return but also lowers the time risk. This can encourage many retail investors to participate in selling options.

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