Wednesday Morning 11/28/2012 AAPL Weekly Options

Pre-market indicators were down this morning and the equity markets did, indeed, open lower. I took advantage of the pullback in AAPL to square up a few weekly positions.

Speaking of weekly options . . . .

Something interesting happened the week before Thanksgiving and that was weekly options in AAPL all the way until the traditional monthly December expiration became available to trade all at once. If you trade these weekly options you know that the following weekly options that expire on Friday become available to trade on Thursday morning eight days before, but this time on, Nov 15th, the options expiring on Nov 23, Nov 30, Dec 7, and Dec 14 all appeared.

Normally I make sure that I am present at the market open on Thursdays as I trade weeklies not only in AAPL but also in AMZN, GOOG, MA, PCLN as well as the SPY and the SSO. I trade these options because the underlying equities trade at high volumes and are therefore liquid, but also (with the exception of the SSO) all have a share price over 100. In fact AAPL, GOOG, MA and PCLN all trade over $400/share. This makes the options much more interesting and valuable. On Thursdays I usually roll my short option positions from one week to the next as the premium almost always has come out by Thursday before expiration.

But on that Thursday, I had to decide about putting on some positions for the whole month and the amount of open positions I held swelled. Not a position I like to be in . . .

The only other equity that I trade in on a regular basis that seems to be offering these ‘new’ weekly options is the SPY. However, after I did a bit of research it looks like the CBOE amended a rule to allow up to five weeks of weekly options to be open at any given time and I have seen that now the Dec28 options are available for AAPL

So much for making my trading, and my life, simpler. I guess I will need to step up some self imposed rules and rely less on the market makers to keep me in check . . .