Options FAQ: Weekly Options
FAQ Categories
Weekly Options Questions
- Is it true that some exchanges are trading options series that expire weekly?
- Will Weekly options be listed every week?
- How can I find which Weekly options are trading?
- What is the last trading day for Equity and ETF Weekly options and how do they settle?
- What is the last trading day for Index Weekly options and how do they settle?
- How can one distinguish the Weekly from the Standard options?
- Will there be more Weekly options in the future?
- Are Weekly options subject to OCC’s exercise-by-exception processing procedures?
- How can I find which Weekly options are trading?
Weekly Options Answers
Q: Is it true that some exchanges are trading options series that expire weekly?
A: Yes, and they call them "Weekly Options Series" or "Weeklys". In addition to previously listed index Weekly options series, the exchanges are now participating in an approved pilot program which allows trading in some equity and ETF Weeklys. These Weeklys have a very short time until expiration – approximately one week. Weekly option series will be listed on a Thursday or Friday and, in most cases, expire the following Friday. Each exchange can list weekly options series on a limited number of classes during the pilot program. You will want to become fully familiar with the contract specifications of any option product you trade by visiting the exchange website where that contract trades.
Q: Will Weekly options be listed every week?
A: Weekly Option Series will be listed each Thursday or Friday (depending on the listing exchange's rules) and expire the following Friday except for those instances when the following Friday is a standard Expiration Friday (the 3rd Friday of the month). If the following Friday is an OCC holiday, the weekly option series will expire on the Thursday preceding the holiday. No new Weeklys are listed that would expire during the expiration week for standard options (the third Friday of each month). In other words, the exchanges do not list new Weeklys on the 2nd Thursday of a month and do not trade Weeklys during the following, standard expiration week until new series are listed on Thursday of that week.
Q: How can I find which Weekly options are trading?
A: Because weekly open interest expires every week, the exchanges have the ability to list different products from week to week. Although this practice has not been frequent, you will want to check with your brokerage firm, the exchange web sites, or inquire by calling 1-888-OPTIONS (678-4667) for currently available products.
Q: What is the last trading day for Equity and ETF Weekly options and how do they settle?
A: Weekly options on equity and ETFs are physically settled and have an American-style exercise feature. The last day of trading for equity and ETF Weeklys is Friday.
Q: What is the last trading day for Index Weekly options and how do they settle?
A: You can find this information, which is specific to each index Weekly product, by going to the web site of the exchange that trades that product and viewing the Contract Specifications. They are cash settled, but their contract specifications vary and you will want to make sure you are fully familiar with their terms. Some may have a last trading day of Thursday and be a.m. settled, others may have a last trading day of Friday and settle p.m. Exercise styles may also vary. For more information you can contact your brokerage firm or 1-888-OPTIONS (678-4667).
Q: How can one distinguish the Weekly from the Standard options?
A: You will see the explicit numerical calendar day of expiration in any contract you trade since the option symbols now include the expiration date. Data vendors may display this data in different formats. Ultimately, entering correct order information for the specific call or put you want to trade is your responsibility. If you have any doubt at all about the product you are trading, the expiration date, the symbology key (if needed) or any other data you're entering then check with your brokerage firm before placing your order.
Q: Will there be more Weekly options in the future?
A: Since the pilot program allows each exchange to list up to five Weekly options series in addition to those listed by other exchanges, that is certainly a possibility.
Q: Are Weekly options subject to OCC's exercise-by-exception processing procedures?
A: Yes, as between OCC and its clearing members, Weekly options series are subject to exercise-by-exception processing procedures at expiration. You should understand your broker's requirements and procedures for the submission of exercise instructions for Weeklys and any other option contract you trade. Also note that Weekly equity and ETF options are "American" exercise style and can be exercised on any business day prior to their expiration provided that submission of exercise instructions are in accordance with your broker's requirements and procedures.
Q: How can I find which Weekly options are trading?
A: Because weekly open interest expires every week, the exchanges have the ability to list different products from week to week. Although this practice has not been frequent, you will want to check with your brokerage firm, the exchange web sites, the OCC site here, or inquire by calling 1-888-OPTIONS (678-4667) for currently available products.