Weekly options were created by the Chicago Board Options Exchange (CBOE) to provide investors with an efficient means to trade options specifically around certain news or events, such as economic data announcements. Weekly options are one-week options as opposed to traditional options that have a life of months or years. Weekly options are available on a select group of equities, ETFs, and indices.
In general, weeklys have the same contract specifications as standard options, except for the time to expiration, and offer the same continuous, two-sided quotes as standard options.
Some weeklys for index options may have settlement characteristics that differ from their standard monthly options. It is recommended to view the exchanges' individual site, such as the Chicago Board Options Exchange, or NASDAQ OMX PHLX, for settlement information regarding the specific index you may be trading.
All new weekly options will be listed eachThursday and expire the following Friday. The exception is that no new weeklys will be listed that would expire during the expiration week for standard monthly options (the third Friday of each month).
For more information about weeklys, visit the Options Industry Council Web site.
Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in Scottrade's Options Application and Agreement, Brokerage Account Agreement, and Characteristics and Risks of Standardized Options (available at your local Scottrade branch office or from the Options Clearing Corporation at 1-888-OPTIONS or by visiting www.888options.com). All option accounts require prior approval by Scottrade. Market volatility, volume, and system availability may impact account access and trade execution. Supporting documentation for any claims will be supplied upon request.