Weekly Options (Weeklys)
Options contracts that expire every week (typically on Fridays) rather than on the traditional monthly expiration cycle, allowing shorter-duration strategies and more precise timing.
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Explained Simply
Weekly options (also called weeklys) were introduced by the CBOE in 2005 and have become enormously popular with active traders. Standard options expire on the third Friday of each month, but weeklys provide new expirations every week — giving traders up to 52 expiration cycles per year instead of 12. The extreme case is 0DTE (zero days to expiration) options, which expire the same day they are traded. 0DTE options on SPX now account for over 40% of total S&P 500 options volume. Weekly options have very little time value remaining, which makes them cheap to buy but experience rapid theta decay. A weekly ATM option on a $100 stock might cost $1.50, while the monthly ATM costs $4.50. The weekly offers more leverage but zero margin for error — if the stock does not move in your direction quickly, the option decays to zero.
Weekly Options vs Monthly Options
Time premium: Weeklys carry much less extrinsic value because expiration is days away, not weeks. This makes them cheap to buy and fast to decay. A $2.00 weekly option might lose $0.30-$0.50 per day in theta, while a $6.00 monthly option at the same strike might lose $0.10-$0.15 per day.
Gamma exposure: Weeklys have extremely high gamma — they move in big percentage terms for small stock moves. A $0.50 weekly call can go to $2.00 on a 2% stock move. This cuts both ways: gains are fast but so are losses.
Strike availability: Major indices (SPX, SPY, QQQ) and popular stocks (AAPL, TSLA, NVDA, AMZN) offer weekly expirations. Smaller stocks may only have monthly expirations.
Cost to hold: If you are wrong and the stock does not move, weekly options lose value much faster than monthlies. Buying a weekly call on Monday and seeing the stock trade sideways all week typically results in near-total premium loss by Friday.
0DTE Options Explained
0DTE (zero days to expiration) options expire the same day they are traded. They have become the fastest-growing segment of the options market, with SPX 0DTE trading over $1 trillion notional daily in 2025.
Why traders use 0DTE: Maximum leverage (options cost very little, so small stock moves create large percentage returns), no overnight risk (positions close the same day), and precise event targeting (trade around economic data releases, FOMC announcements).
Risks of 0DTE: Gamma is extreme — a profitable position can reverse to worthless within minutes. Bid-ask spreads can widen dramatically around events. Assignment risk for ITM options is immediate. Most 0DTE options expire worthless, making them a losing proposition for undisciplined buyers.
Who should trade 0DTE: Experienced options traders with strict risk management, defined entry/exit rules, and comfort with rapid position changes. 0DTE is not appropriate for beginners.
How to Use Weekly Options (Weeklys)
- 1
Understand Weekly Characteristics
Weekly options expire every Friday and have accelerated theta decay. They're useful for short-term directional bets, earnings plays, and premium selling. However, gamma is very high near expiration — small price moves cause large option price changes.
- 2
Use for Premium Selling
Sell weekly credit spreads 5-10 DTE to capture rapid theta decay. Select strikes at 10-15 delta for 85-90% probability of profit. Close at 50% of max profit or when 2 days remain. The rapid theta makes weekly premium selling attractive but gamma risk is elevated.
- 3
Be Cautious with Long Weekly Options
Buying weekly options is essentially a short-term bet — theta destroys value rapidly. Only buy weeklies when you expect an immediate move (within 1-3 days). If the move doesn't happen, the option can lose 50%+ of its value in a single day. Size very small (0.5-1% of account).
Frequently Asked Questions
What are weekly options and how do they work?
Weekly options are options contracts that expire every Friday (with some indices offering daily expirations). They work exactly like standard options — calls give you the right to buy, puts give you the right to sell — but with much shorter time horizons. The short duration makes them cheaper to buy but much more sensitive to time decay and price movement.
Are weekly options riskier than monthly options?
Yes, for buyers. Weekly options have higher theta decay (time value erodes faster), higher gamma (price sensitivity is amplified), and less time for the trade to work. For sellers, weeklys can actually be favorable because rapid time decay works in their favor — but the risk of sharp moves remains. In either case, position sizing should be smaller for weeklys.
What does 0DTE mean?
0DTE stands for zero days to expiration — options that expire the same day they are traded. They offer maximum leverage and no overnight risk, but they are also the most volatile options available. Most 0DTE options expire worthless, and profitable positions can reverse to zero within minutes.
How Tradewink Uses Weekly Options (Weeklys)
Tradewink uses weekly options for short-duration directional trades where the catalyst (earnings, Fed decision, economic data) occurs within the current week. The options routing engine compares the cost efficiency of weeklys versus monthlies: when a catalyst is imminent and IV is already elevated, weeklys often provide better risk/reward because you avoid paying for unnecessary time premium beyond the event.
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See Weekly Options (Weeklys) in real trade signals
Tradewink uses weekly options (weeklys) as part of its AI signal pipeline. Get daily trade ideas with full analysis — free to start.