You are previewing Trading Weekly Options + Online Video Course: Pricing Characteristics and Short-Term Trading Strategies.
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Trading Weekly Options + Online Video Course: Pricing Characteristics and Short-Term Trading Strategies

Book Description

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.

Table of Contents

  1. Cover
  2. Half Title
  3. Series Page
  4. Title Page
  5. Copyright Page
  6. Dedication
  7. Preface
  8. Acknowledgments
  9. Chapter 1: Introducing Weekly Options
    1. Evolution of Weekly Options
    2. Popularity of Weekly Options
    3. Option Expiration Dates Explained
    4. Option Symbols and Weeklys
  10. Chapter 2: Short-Term Index Options
    1. Dow Jones Industrial Average (DJX)
    2. Russell 2000 (RUT)
    3. NASDAQ-100 (NDX)
    4. S&P 100 Weeklys (OEX and XEO)
    5. S&P 500 (SPX, SPXPM, SPXW)
    6. Index Option Comparisons
    7. Comparing Index and Exchange-Traded Fund Options
  11. Chapter 3: Weekly Options on Equities and Exchange-Traded Products
    1. Stocks
    2. Exchange-Traded Products
    3. Leveraged Exchange-Traded Products
    4. Inverse Exchange-Traded Products
    5. Volatility-Related Exchange-Traded Products
    6. Summary
  12. Chapter 4: Option-Pricing Factors and Short-Dated Option Contracts
    1. Underlying Market Price
    2. Days to Expiration
    3. Implied Volatility
    4. Interest Rates
    5. Dividends
  13. Chapter 5: Time Decay and Short-Dated Options
    1. Behavior of Time Decay
    2. Weekends and Time Decay
    3. Time Decay and Trading Decisions
    4. Avoiding Time Decay
  14. Chapter 6: Implied Volatility and Weekly Options
    1. Time to Expiration and Implied Volatility
    2. Interpreting Implied Volatility
    3. Behavior of Implied Volatility
    4. Implied Volatility across Expiration Dates and Strike Prices
  15. Chapter 7: Developing Your Trading Plan
    1. Markets to Trade
    2. Trading Strategies
    3. Trading Decisions
    4. Capital and Risk Management
    5. Keeping a Trading Record
    6. Tying It All Together
  16. Chapter 8: Long Option Trades
    1. Long Call
    2. Long Put
  17. Chapter 9: Short Option Trades
    1. Short Call
    2. Short Put
    3. Selling a Put to Purchase Shares
    4. CBOE PutWrite Index
    5. Tying Short-Dated Option Selling Together
  18. Chapter 10: Covered Calls and Buy-Writes
    1. Covered Call Basics
    2. Covered Call Trading Examples
    3. Covered Calls and Dividends
    4. Index Options and Covered Calls
    5. CBOE S&P 500 BuyWrite Index
    6. CBOE S&P 500 2 Percent OTM BuyWrite Index
  19. Chapter 11: Hedging with Short-Dated Options
    1. Protective Put
    2. Protective Put Trading Example
    3. The Collar
    4. Trading Example Using the Collar
    5. The Modified Collar
    6. The Modified Collar Trading Example
  20. Chapter 12: Bullish Spread Trading
    1. Bullish Vertical Spread
    2. Bullish Spread Trading Examples
  21. Chapter 13: Bearish Spread Trading
    1. Bearish Vertical Spread
    2. Bearish Spread Trading Examples
  22. Chapter 14: Neutral Spread Trading
    1. Iron Butterfly
    2. Iron Butterfly Trading Examples
    3. Iron Condor
    4. Iron Condor Trading Examples
  23. Chapter 15: Split Strike Long Spreads
    1. Synthetic Long and Short
    2. Split-Strike Positions
    3. Split-Strike Trading Example
    4. Bull-Put Spread Plus Long Call
  24. Chapter 16: Calendar Spreads
    1. Calendar Spread Overview
    2. Time Value and Implied Volatility
    3. Option Skew
    4. Trading Example
  25. Chapter 17: Diagonal Spreads
    1. Diagonal Spread Overview
    2. Short-Term Diagonal Spreads
    3. Short-Term Bullish Diagonal Spread
    4. Short-Term Bearish Diagonal Spread
    5. Long-Term Diagonal Spreads
    6. Long-Term Bullish Diagonal Spread Trade
    7. Bearish Diagonal Spread Trade
  26. Chapter 18: Trading Earnings Releases with Short-Dated Options
    1. Stock Prices and Earnings
    2. Option Prices and Earnings
    3. The Earnings Announcement
    4. Earnings Trades
    5. Earnings Trading Strategies
  27. Chapter 19: Leveraged Exchange-Traded Products
    1. Leveraged Long
    2. Leveraged Short
  28. Chapter 20: VIX-Related Exchange-Traded Products
    1. iPath S&P 500 VIX Short Term Futures ETN (VXX)
    2. ProShares Ultra VIX Short-Term Futures ETF (UVXY)
  29. About the Video
  30. About the Author
  31. Index
  32. Access Code