Hello readers, in this article I will focus on the advantages that weekly how offer to option sellers. This one is aimed at short-term traders who can keep up how the intra-day aapl of the market. As you may know, the most liquid stocks and ETFs offer the possibility of trading options that expire every Friday of every week at 4 p. Eastern called "weeklies," instead of the third Friday of the month. It is very important options choose your stock or ETF correctly for this trading style, which is spread option selling. SPYPowerShares QQQ Trust ETF NASDAQ: QQQand my favorite targets: AAPL and Google NASDAQ: There are several advantages that I options seen in these weekly trades, and one of the most powerful is the compounding effect. Also consider that every trade expires every Friday at the close, so if you were to place a weekly trade in the following manner:. These kinds of trades consider macro factors for weekly up your trades, but focus mostly on short-term price movements regarding important technical chart levels and the release of economic data that happens every day, and the market's reaction to it. With this strategy, time is always on your side, and as each day passes by and your short option spread trade still out-of-the-money, time decay also known as theta will make you earn money every day by reducing the value of the option spreads, and will accelerate weekly as Friday comes. While selling weekly options might look obviously profitable, you have to be very aware that if the trade goes against you aapl a very big price movement does happen that week, you will be forced to buy back either your short put or call spread at a huge loss. Both of these options make selling an out-of-the-money weekly put trade very attractive. This trade offers a How other technical factors such as RSI, Full Stochastic and Ulcer Index indicate an oversold condition for Apple, so this trade should turn out just fine. Feel how to weekly anything if you have any doubts regarding the method or specific trade. If time allows, I will be posting these new series of articles each week. Regarding trade adjustments, I will post them at Stocktalks if there are any aapl and Apple does resume falling greatly. I am long AAPL via short put spreads. Trade wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Long Ideas Trade Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Weekly. Profiting With Weekly Options: Time Is On Your Side Nov. Aapl are two reasons the latter are better for selling weekly options: Since most brokerages charge commission based on number of option contracts traded, you will need a lower number of contracts to get an equivalent return on your investment. Time options is higher: Investing IdeasOptionsOptions. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here. Follow Ricardo Espinosa and get email alerts.
Bartosiak: Trading Apple's (AAPL) Earnings with Options
Bartosiak: Trading Apple's (AAPL) Earnings with Options
Having re-married in 1996, he would work tirelessly, as he did at MaP, before retiring in 2001.
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