Dr. Kearney’s Option Clinic: Heads’s Up Weekly Options Traders

Weekly options have become popular, if you’re trading Weekly’s you already know this. This is still a Pilot-Program, and is limited to a relatively small number of Stocks, ETF’s and Index Options. Two items to be aware of:

If you are trading trading Weekly’s next week, remember that the markets and The CBOE are CLOSED next Friday, April 22nd. The last day to trade the Weekly’s will be Thursday. Kind of an important item.

Second, Lynne Howard-Reed at the CBOE reminded me of something about Weekly’s. Regular SPX Expiration has not changed, it is still A.M. Settlement. The SPX Weekly’s changed a few months ago to P.M. Settlement. This, among other things, allows investors and traders to roll positions to the following week or an upcoming expiration. It also allows one more day to trade (changing from friday A.M. to friday P.M. Settlement. If you want the CBOE Regulatory Circular explaining this, it is RG-10-112.

One last item: Shares of PUDA as of 9:45 CDT have not re-opened for trading. If you have an April option position talk to your broker immediately, and monitor the Options Clearing Corp web-site for any late breaking news concerning that stock (new visitors scroll down to Jim Bittman’s article a few days ago).

The Clinic is now Closed.