Next Week in Weeklys – 2/28/2014

There were some slight changes to the list of markets and stocks that have short dated options available.   The Wisdom Tree India Earnings Fund ETF (EPI) and Sun Edison Inc (SUNE) joined the list while Vodaphone Group (VOD) was dropped from the list.

The earnings list shrunk tremendously with only a handful of companies reporting this week.  Also, the action is divided between Monday and Thursday with not a lot between those two dates.  As always the historical reactions for these stocks is shown below.


When CBOE decided to start listing weekly options on individual stocks my first thought was covered calls.  The time decay benefits for at the money options with just a few days left to expiration seemed to me to be a compelling use of short dated options.  Apparently a holder of AT&T (T) stock feels this way as well.  I’ve noticed periodically that there is a seller of between 11,000 and 12,000 slightly out of the money short dated calls on T.  This past Tuesday they popped up when T was trading over 32.00 which prompted a seller of just under 12,000 of the T Mar 7th 32.50 Calls at 0.22.