Weekly Expiry Pro

No, weekly options are available on limited ASX underlyings. XJO has weeklies, and some major stocks (BHP, CBA, CSL) may have weekly options at times. The availability is much more limited than US markets. Always check current ASX option availability for specific stocks.

Yes, but carefully. Weekly options have smaller premiums, making them accessible. However, the accelerated decay and higher gamma mean mistakes are punished quickly. Start with very small positions (0.5-1% of account risk) until you understand the behavior.

If in-the-money, XJO options are cash-settled automatically. Equity options may be exercised or assigned. It's bad practice to 'forget' - always manage expiration actively. Set calendar reminders for Thursday expiration.

Start with monthly options. They give more time for recovery if wrong, have lower gamma, and are more forgiving of mistakes. Once comfortable with monthlies, gradually introduce weeklies with smaller sizes.

Options have less time value when there's less time to expiration. A 4-day option has less uncertainty than a 30-day option, so it's worth less. However, on a per-day basis, weeklies decay faster, which benefits sellers.

Iron condor: Neutral view, want to collect premium on both sides, willing to manage two legs. Credit spread: Have directional lean, simpler to manage, concentrated on one side. Iron condors have higher probability but more legs to monitor.

If breached, close immediately. Don't hope for recovery with only 1 day left. A small loss now is better than a max loss at expiration. Alternatively, you could roll to next week if you believe the breach is temporary, but this extends your exposure.

Weekly vega is much lower (about 0.3-0.5× monthly). This means IV changes affect weeklies less. This is good if IV drops after you sell premium (less benefit to you, but also less hurt). Weeklies are more theta plays than vega plays.

Yes, this is a valid strategy. If your weekly position is challenged but you still believe in the thesis, rolling to a monthly gives you more time. You'll collect more premium (further out) but take on more vega exposure. It's a trade-off.

If the gap puts you immediately near or beyond a short strike, close the threatened side immediately. The gap already consumed your 'buffer.' If the gap is in your favor (away from short strikes), it's a bonus - consider taking early profit if substantial.

Break-even realized volatility = √(Theta Cost / Gamma × Scalp Efficiency). If your daily theta is A$30 and gamma is 0.05, you need roughly √(30/0.05) ≈ 24.5% annualized realized vol to break even, assuming perfect scalping efficiency. In practice, add 20-30% buffer for transaction costs and imperfect execution.

Research suggests 5-8 uncorrelated positions provide good diversification without over-complexity. More positions have diminishing diversification benefit and increase management burden. Fewer positions have higher concentration risk. Adjust based on account size and management capacity.

When weekly IV significantly exceeds monthly (backwardation), consider selling the weekly and buying the monthly at the same strike (calendar spread). You profit as the weekly decays faster or the term structure normalizes. Risk: If the event causes a large move, both lose.

Useful features: Recent realized volatility, day-of-week patterns, term structure slope, underlying momentum, sector correlation, volume ratios, and event calendar data. Models can predict optimal entry timing, strike selection, and position sizing. Requires significant data and expertise.

Low XVI (<14): Weaker premium, use tighter strikes or skip. Moderate XVI (14-20): Normal operation, standard delta targets. High XVI (20-30): Good premium, use wider strikes for more buffer. Crisis XVI (>30): Consider skipping or very wide strikes. The relationship between strike distance and probability changes with vol.