What does weekly options refers to ?

Weekly Options Definition -

A weekly option refers to a contract that has a maturity of one or more weeks. Other aspects, such as tick size, underlying, strike prices intervals, etc., are the same as regular monthly options.

What is the difference between weekly and monthly options?

Except for the expiration period, there is not much difference between weekly options and monthly contracts. For weekly contracts, the expiration time is between 1 and 5 weeks while for monthly options contracts it is between 1 and 3 months.

When does the weekly Options contract expire?

Weekly Options contracts expire every Thursday. If Thursday is a holiday, the expiry date will be the previous trading day.

What are the advantages of Weekly Options?

Weekly Options offer many benefits, including:

• Weekly Option contracts have a lower premium than those with monthly contracts.
• You can arbitrage between 1- and 2-week contracts and monthly ones.
• Traders are able to take on more positions using less capital.
• It can be used as a short-term hedge tool.
• It increases liquidity by attracting more participants because it has a shorter maturity cycle.