Weekly Expiry Pro

Check the Montreal Exchange website or your broker's option chain. XIU has the most liquid Canadian weeklies. Banks (RY, TD, BMO) have weeklies but with lower liquidity. Most other Canadian stocks only have monthly options.

Yes, you can trade defined-risk weekly strategies in a TFSA. This includes long calls/puts, debit spreads, credit spreads (with some brokers), and iron condors. Naked short options require a margin account.

For credit spreads: enough margin to cover max loss per position. For a $1-wide spread, that's $100 max loss. With multiple positions, you might need $5,000-10,000 to run a meaningful weekly strategy.

To avoid pin risk, assignment risk, and execution issues at expiration. It's best practice to close by Friday afternoon (3 PM or earlier) to maintain control over your positions.

Weekly trading involves entering Monday/Tuesday and managing through the week. 0DTE is trading options on their expiration day only (Friday for weeklies). 0DTE has even more extreme theta and gamma.

50% of max profit is standard. This captures significant premium while avoiding late-week gamma risk. Some traders use 25% for more conservative exits or 75% for more aggressive profit capture.

Use delta-based selection (16-25 delta on each side) or set strikes outside the expected move (ATM straddle price). For weekly, this typically puts short strikes 1-1.5 standard deviations from current price.

Roll only if: (1) thesis is intact, (2) position is tested but not deeply ITM, (3) roll can be done for credit or small debit, (4) you haven't already rolled multiple times. Otherwise, take the loss and start fresh.

2-4 positions is typical. This provides diversification without over-concentrating in weekly gamma risk. Total weekly risk should stay within 5-8% of portfolio.

Options: (1) Close the position and take the loss, (2) Roll to next week if thesis intact and roll works, (3) Close just the tested side and let the other side decay. Don't hold hoping for a miracle reversal.

Track implied weekly move (from straddle) vs actual weekly move over many weeks. If implied consistently exceeds realized, selling premium has statistical edge. Typically weeklies are slightly overpriced due to hedging demand.

Define: (1) Entry rules (days, time, conditions), (2) Structure rules (strikes, width), (3) Sizing rules (max risk, max positions), (4) Management rules (profit, stop, time exits), (5) Tracking system. Forward test 3-6 months before live.

Set targets/limits: (1) Theta budget (target weekly theta income), (2) Gamma limits (max P&L swing from X% move), (3) Delta limits (keep near neutral or within target). Rebalance positions to maintain targets.

Diversify underlyings across sectors (banks, energy, index). Track correlations. Stress test: what happens if all positions move against you? Ensure worst-case scenario is survivable.

Common split: 40-60% weeklies for income, 40-60% 30-45 DTE for stability. Weeklies provide higher theta but more management. Monthlies provide smoother returns. Adjust based on your management capacity.