Learn To Trade Weekly Options

Looking to learn how to trade Weekly Options? Here’s a great article out of Seeking Alpha, my favorite option trading blog (besides this one of course).  🙂  In it you’ll learn how and why to trade weekly options and you’ll see it all enforced with an example using Apple weekly options.

When we look at ways to make money with weekly options, one of the most important things we need to address is how we approach time decay, which is a major factor since out options expire after seven trading days. A strategy that I have used and found successful is the credit spread. This type of play is also known as a vertical strategy. If done correctly, it uses time decay as an ally.

There are two types of directional plays. A Bear Call Spread can be used when a stock is neutral to bearish. A Bull Put Spread can be used when a stock is neutral to bullish. But, before either can be initiated, there are a couple of things a good investor should research.

(Click to enlarge)

Remember we are talking a very short term options play here so when we look at our stock we need to determine how we believe it will move in the next week. Let’s take Apple as an example.

When I look at Apple’s (AAPL) chart and how it has moved up, there are two things that stick out to me right away as I make my observations:

Go to Seeking Alpha for the rest of the story

Option Trading Secrets

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