When do december options expire

Quarterlies are typically listed with Q1, Q2, Q3, or Q4 preface indicating the quarter in which they expire.

When do options expire for LEAPs? These are long term options contracts and are not available for all stocks. These are available in contacts of up to 39 month duration and expire in January only.

They expire on the same day as regular options for that month. The last batch of options is the weeklies. When do options expire for weeklies and how do options work on weeklies? These options contracts begin on Friday and end on the next Friday. Traders choose to trade given types of options for specific reasons. Weeklies give the trader a degree of flexibility that may provide more targeted trading opportunities and allow investors take advantage of market events, such as earnings, Fed announcements and government reports.

So there is this discontinuity right at the strike price-- and the gamma of the option can be represented by a "dirac function. If you have a short option that goes in the money into expiration, you must fulfill that transaction. I found on Saturday that the short options had expired in the money, and that I now had a sizeable long position on in BIDU. Make sure your books are cleared out of all in the money options if you don't want to get assigned.

If you have a sold call, you will be given a short position if you don't own the stock already. This is known as a "naked" call rather than a "covered" call. Margin to hold this short is determined by your broker, and to eliminate the short you will have to "buy to close" on that stock.

See my full guide on options pinning. Most options are American style, but you rarely have early assignment. A good rule of thumb is if your option has no extrinsic value time premium left, then you need to adjust your position. Because of that "gamma impulse" we talked about earlier, the risks and rewards are much, much higher compared to normal options tarding.

There's two groups of OpEx trades to consider: option buying strategies and option selling strategies. Option buying strategies attempt to make money if the underlying stock sees a faster move than what the options are pricing in. The profit technically comes from the delta directional exposure , but since it is a long gamma trade, your directional exposure can change quickly leading to massive profits in the very short term.

The main risk here is time decay. Option selling strategies attempt to make money if the stock doesn't move around that much. Since you are selling options you want to buy them back at a lower price. And since option premium decays very fast into OpEx, the majority of your profits come from theta gains. Your main risk is if the stock moves against you and your directional exposure blows out. This is a pure volatility play.

If we think the options market is cheap enough and the stock is ready to move, we will buy weekly straddles. As an example, a trade alert was sent out to buy the AAPL If AAPL saw more than 5 points of movement in either direction, we'd be at breakeven. Anything more would be profit. This trade is risky because it has the opportunity to go to full loss in less than 5 days. Position sizing and aggressive risk management is key here.

When an individual stock goes parabolic or sells off hard, we will look to fade the trade by either purchasing in-the-money puts or by selling OTM spreads.

These are high-risk, high-reward trades that speculate strictly on the direction of a stock. Generally a stock will develop a short term technical setup that looks to resolve itself over the course of hours instead of days. Save this setup as a Chart Templates. Switch the Market flag for targeted data from your country of choice.

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