#1 – Weeklys Trade at Low Prices
We’re not talking theoretical values here; we’re talking dollars. In general, Weeklys cost far less than monthly options simply because the time to expiration is so short. Traders only have a few days for a stock or index to move in the money.
Many unsophisticated traders don’t grasp how quickly out-of-the-money options can fade into oblivion. For these traders, Weeklys are just another way for them to lose money quickly. In the hands of more sophisticated traders who understand how to hedge their positions, Weeklys represent an additional profit opportunity.