Weekly and Quarterly Options

Nasdaq offers short-term options series (“Weeklies”) on underlyings. A weekly option is bought and sold much like a monthly option, but a shorter time frame can be utilized for maximum precision.

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Weekly Options

Nasdaq offers short-term options series (“Weeklies”) on underlyings. A weekly option is bought and sold much like a monthly option, but a shorter time frame can be utilized for maximum precision.

Short-term options series trade for approximately 50 products one week and expire on Fridays, unless Friday is a trading holiday. Select symbols have weeklies going out as far as five weeks, pursuant to ISE Rule 504.02. Nasdaq will list new Weeklies on Thursday of each week expiring the following Friday. Weeklies on AM-settled indexes will stop trading at close of business on the Thursday prior to expiration. Weeklies on equities and ETFs will stop trading at close of business on Friday (expiration day). 

ISE, GEMX and MRX are allowed to list up to 60 series in each weekly class. In the event of unusual market movement or significant customer demand, each exchange will list new series up to two days prior to expiration. Weeklies are subject to corporate action adjustment as their standard counterparts. 

The option symbols of Weeklies are identical to those used for standard monthly options. The difference between monthly and weekly options is the expiration date. The series name of Weeklies is structured as follows:

- Underlying symbol

- 1-character Expiration Year

- 3-character Expiration Month

- Strike Price with one decimal place

- Call/Put Indicator

- "-DD" (Expiration Day)

An example series name for a weekly is BAC3FEB11.0C-08.

Quarterly Options

Quarterly Options are series of options that expire on the last business day of each calendar quarter. Quarterly Option Series are P.M. settled, therefore, their exercise settlement value is based on the closing level of the index on the day of expiration.

Currently the PHLX lists Quarterly Options Series on the following Indices:

- KBW Bank Index (BKX)

- PHLX Gold/Silver Sector SM (XAU)

- PHLX Oil Service SectorSM (OSX)

- PHLX Semiconductor SectorSM (SOX)

Contracts Listed: Up to four (4) consecutive calendar quarters

Multiplier: $100

Exercise Style: Same as the normal monthly expiration options on the same underlying index. (BKX and OSX are European-style; while XAU and SOX are American-style).

Strike Price Intervals: Strike price intervals shall be the same as the interval for strike prices for series in that same option class that expire in accordance with normal monthly expiration cycle.

Strike Prices: At least two but not more than five strike prices above, and two but not more than five strike prices below the value of the underlying index at about the time that a Quarterly Index Options Series is opened for trading on the Exchange. Consult PHLX Rule 1012 for more information. Additional series may be added so as long as the strike price is within 30% of the current index value. Consult PHLX Rule 1101A for more information.

Premium Quotation: Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).

Expiration Date: The last business day of each calendar quarter.

Last Trading Day: Quarterly Index Options are P.M.-settled contracts; therefore, the last trading day is the last business day of each calendar quarter.

Position Limit: Quarterly Options positions will be aggregated with the normal monthly expiration options on the same underlying index.

Margin: Same as the normal monthly expiration options on the same underlying index.

Trading Hours: 9:30 A.M. to 4:00 P.M. Eastern Time.

Nasdaq offers short-term options series (“Weeklies”) on underlyings. A weekly option is bought and sold much like a monthly option, but a shorter time frame can be utilized for maximum precision.

Maximize Leverage

Allows customers to maximize leverage on short-term market moves

Decreases Exposure

Buying weekly options decreases exposure to time decay, meaning less time premium to be paid

Establish Strategies

Allows traders to establish more tailored buying, selling and spreading strategies

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