What are weekly Options?

Weekly Options Definition-

A weekly option is a contract with a maturity of 1 or more weeks. The other things like tick size, underlying, strike price intervals etc., remain the same as regular monthly contracts.

How are weekly options different from monthly contracts?

There’s not much of difference between weekly and monthly options contracts except for the expiration time. The expiration period in case of weekly contracts is 1 to 5 weeks whereas in monthly contracts it is 1 to 3 months.

When do weekly Options contract expire?

Weekly Options contracts expire on Thursday of every week. In case of the Thursday being a holiday then the expiry is on the previous trading day.

What are the benefits of weekly Options?

There are many benefits of weekly Options like-

• The premium for weekly Option contracts is lower than monthly contracts.
• It offers arbitrage opportunities between 1 and 2 week and monthly contracts.
• Traders can take more positions with smaller investment capital.
• Works as a short-term hedging tool.
• Improves the liquidity of the market as it attracts more participants due to shorter maturity cycle.