Weekly Expiry Pro

No. Singapore only has monthly option expirations. 'Weekly expiry' strategies can only be used during the week leading up to the monthly expiration (once per month). US markets have weekly/daily expirations, but Singapore does not.

ITM options are auto-exercised (equity) or cash-settled (index). If you're short ITM options, you may be assigned. It's generally better to close before expiration to avoid uncertainty and assignment risk.

Gamma is elevated during expiration week, meaning P&L swings are larger. A 1% stock move can cause 5-10%+ position changes. Smaller size (50-75% of normal) helps manage this increased volatility.

Both can work. Selling benefits from accelerated theta decay but has gamma risk. Buying benefits from gamma but pays heavy theta. Sellers have higher win rates; buyers have higher potential gains per trade.

Monthly expiration is the 2nd last business day of each month. This is usually a Thursday or Friday. Check the SGX calendar for exact dates, as holidays can affect the schedule.

Expected weekly move ≈ ATM straddle price × 0.85 × √(DTE/365). Or simpler: if ATM straddle is S$0.80 with 5 DTE, expected move is roughly S$0.80 × 0.85 × √(5/365) ≈ S$0.80. Place strikes outside this range.

Pin risk is the tendency for stocks to gravitate toward strike prices at expiration due to hedging. Trade around it by: (1) Using butterflies centered at expected pin, (2) Avoiding short strikes near current price, (3) Closing before final hour.

Iron condors offer higher theta but more gamma risk. Calendars offer theta with less gamma risk (back month provides cushion). Use condors when very confident in range; calendars when want more protection from moves.

Options: (1) Close for loss before it gets worse, (2) Roll tested side further away, (3) Close untested side to reduce exposure, (4) Close entire position. Don't hold and hope - gamma makes losses accelerate in exp week.

Butterflies are cheap in exp week (low time value) but pay big if stock lands at center. The risk/reward can be excellent (risk S$50 to make S$400). They exploit pin risk by profiting when stock gravitates to strikes.

Define: (1) Entry criteria (day, IV level, market condition), (2) Structure selection rules, (3) Strike selection method, (4) Position sizing formula, (5) Exit rules (profit, loss, time). Track performance by structure and condition. Refine based on data.

Theta/Gamma ratio measures theta decay per unit of gamma risk. Higher ratio = more favorable for sellers. Calculate position theta ÷ position gamma. If ratio deteriorates (gamma rising faster than theta), consider adjusting or closing.

Charm (delta change from time) is very high in exp week - delta can change significantly overnight. Vanna (delta change from IV) matters if IV is moving. Both require morning position reviews and potential delta rebalancing.

Use exp week trades as income overlay on core monthly positions. Ensure exp week trades don't contradict monthly view. Allocate specific % to exp week (e.g., 10-20% of options capital). Track exp week P&L separately to assess value-add.

ITM short options can be assigned anytime but most likely at expiration. Have capital ready for potential share delivery/purchase. Close ITM shorts before expiration to avoid. For index options, no assignment - cash-settled.