Trading Weekly Options: Pricing Characteristics and Short–Term Trading Strategies + Online Video Course

YOUR COMPLETE GUIDE TO UNDERSTANDING AND TAKING UTMOST ADVANTAGE OF ONE OF TODAYS FASTEST GROWING TRADING INSTRUMENTS Launched by the CBOE in 2005, weekly options are now traded on all major indices, as well as high–volume stocks and ETFs. Offering fifty–two trading opportunities annuallyversus the twelve afforded by monthly option contractstheir popularity has grown by leaps and bound, and they now account for as much as twenty percent of daily options volume. While traditional options strategies work equally well with weeklys as they do with monthly contracts, weeklys are particularly well positioned to take advantage of premium selling strategies and short–term trades based on both current events and technical patterns. Written by Russell Rhoads, an instructor at the CBOEs Options Institute, this book/video package fills you in on everything you need to know to use short–term options contracts to make more money from standard option selling strategies and to make less expensive bets on short–term market moves. The first comprehensive guide to getting started in weeklys and capitalizing on the many exciting opportunities in that booming finance sector, Trading Weekly Options : Clearly explains the unique pricing and behavioral characteristics of weekly options Shows you how to take utmost advantage of those unique features using a range of strategies Uses numerous real–world examples to inculcate you in the most effective trading strategies associated with weekly options Highlights techniques for exploiting the accelerating time–decay curve when an option approaches expiration Featuring priceless insights, advice and guidance from one of the industrys foremost short–term options experts, Trading Weekly Options is a must–have resource for experienced and beginning options traders alike.

Preface ix Acknowledgments xi Chapter 1 Introducing Weekly Options 1 Chapter 2 Short–Term Index Options 9 Chapter 3 Weekly Options on Equities and Exchange–Traded Products 19 Chapter 4 Option Pricing Factors and Short–Dated Option Contracts 25 Chapter 5 Time Decay and Short–Dated Options 31 Chapter 6 Implied Volatility and Weekly Options 39 Chapter 7 Developing Your Trading Plan 55 Chapter 8 Long Option Trades 61 Chapter 9 Short Option Trades 69 Chapter 10 Covered Calls and Buy–Writes 83 Chapter 11 Hedging with Short–Dated Options 97 Chapter 12 Bullish Spread Trading 113 Chapter 13 Bearish Spread Trading 131 Chapter 14 Neutral Spread Trading 147 Chapter 15 Split Strike Long Spreads 165 Chapter 16 Calendar Spreads 187 Chapter 17 Diagonal Spreads 201 Chapter 18 Trading Earnings Releases with Short–Dated Options 215 Chapter 19 Leveraged Exchange–Traded Products 235 Chapter 20 VIX–Related Exchange–Traded Products 243 About the Video 247 About the Author 249 Index 251

RUSSELL RHOADS, CFA, is an instructor for the Options Institute at the Chicago Board Options Exchange. He teaches about 90 classes a year and conducts webinars on behalf of the CBOE and a variety of brokerage firms. Rhoadss twenty–year trading career has included positions at a variety of trading firms and hedge funds. His background includes trading and analysis, and he is the author of the Wiley titles Trading VIX Derivatives, Candlestick Charting for Dummies , and Option Spread Trading . Rhoads graduated with an MS in finance from the University of Memphis and a masters certificate in financial engineering from the Illinois Institute of Technology.