Focus back on Weekly Options
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Now, the theme this time isWeekly Options.
As you all know, in addition to monthly options that expire on the second Friday of each month, there are weekly options that expire every Friday other than the monthly options.
Weekly options, depending on how you use them, can be very convenient.
＜Advantages＞
◎ Since the time to expiration until the SQ is short, sellers can feel the benefit of time decay.
＜Disadvantages＞
★ Low trading volume
★ There is no DOTM (Deep Out Of The Money) strike price
Therefore, you tend to trade near-the-money strike prices, which also increases margin requirements.
★ Not many brokerage firms handle them.
Example) Rakuten Securities, SBI Securities, GMO CLICK Securities, etc.
As you can see, weekly options have several disadvantages, but in today's tense situation with North Korea, having a shorter time to expiration is a very attractive feature for option sellers.
The key to increasing profitability is to use them as needed.Note) The above is my personal opinion and is intended only to improve financial literacy. Therefore, it was not created for investment solicitation. Please make final investment decisions at your own responsibility.
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