Weekly Options, or commonly called “Weeklies”, are options that trade for about one week.
New Weeklies are listed each Thursday or Friday and expire the following Thursday or Friday except the third week of the month because that is when the regular monthly options have only one week left to expiration.
Except for the shorter duration, Weeklies generally have the same contract specifications and offer the same continuous, two-sided quotes as standard options.
History of Weekly Options
October 2005 – Weekly Options, first introduced by the Chicago Board Options Exchange (CBOE), the largest U.S. options market, which are one-week options as opposed to traditional options that have a life of months or years before expiration.
These Weeklies are based on the index options: SPX, XSP, OEX, and XEO. These are cash-settled options.
As of June 04, 2010, the Chicago Board Options Exchange (CBOE) announced that it will begin trading new Weekly Options on four exchange traded [...]