Basics of Options Trading FAQs

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.

What is the work of Options ?

How many types of Options ?

What is strike price of option ?

When does Options expire?

What is the process for trading options ?

How futures and Options are different ?

How Nifty can be traded ?

What will happen when an option expires out of money ?

Do I have to pay margin in Options ?

How can the Options contracts be settled ?

What do you mean by Covered Options ?

When do you mean by Naked Options ?

What does American Options refers to ?

What does European option mean? ?

In Options , What is the meaning of At-The-Money , Out-of-the-Money (OTM) and In-The-Money ?

How to take decision on either to buy /sell call Option or put Option ?

Is it possible to trade on option of any stock or index?

How Square off and exercise an Option is different ?

What does intrinsic value of an option mean and how to calculate intrinsic value of an option ?

What does time value of an Option mean ?