Best Weekly Options Strategies
Learn the best strategies for trading weekly options, leveraging rapid time decay while managing the unique risks of short-dated contracts.
What is These strategies?
These strategies Weekly options strategies capitalize on accelerated theta decay in the final days before expiration, offering higher annualized returns with more frequent trading opportunities.
The rapid time decay in weekly options creates opportunities for premium sellers but also increases gamma risk, requiring more active management.
Sell OTM spreads on Monday, let theta decay work through the week. High win rate with defined risk.
- ✓ Fast theta decay
- ✓ Defined risk
- ✓ High probability
- ✓ Weekly income
- ✗ Gamma risk increases
- ✗ Quick decisions needed
- ✗ Commissions add up
Sell both sides for maximum premium capture. Best in low volatility, range-bound weeks.
- ✓ Higher premium
- ✓ Both-sided income
- ✓ Defined risk
- ✗ Two-sided risk
- ✗ Requires management
- ✗ Narrow profit zone
Trade same-day expiration options for quick profits. Requires discipline and quick execution.
- ✓ Fastest theta
- ✓ Multiple trades per day
- ✓ Small capital per trade
- ✗ Highest gamma risk
- ✗ Requires constant attention
- ✗ Emotional stress
Low-cost lottery tickets targeting specific end-of-week prices. Excellent risk/reward.
- ✓ Very low cost
- ✓ Huge potential return
- ✓ Defined risk
- ✗ Low win rate
- ✗ Need precise prediction
- ✗ Time sensitive
Trade weeklies around earnings, FOMC, and other catalysts. Leverage IV expansion/crush.
- ✓ High IV premium
- ✓ Clear catalysts
- ✓ Defined timing
- ✗ IV crush risk
- ✗ Binary outcomes
- ✗ Unpredictable moves
How We Ranked These Strategies
Rankings based on: risk-adjusted returns, manageability, theta efficiency, and suitability for weekly trading rhythms.
Weekly Trading Rhythm
Many weekly traders follow this schedule:
- Monday: Open new positions after weekend gap settles
- Tuesday-Wednesday: Let theta work, manage if necessary
- Thursday: Close winners at 50% profit target
- Friday: Close remaining positions, avoid pin risk
Frequently Asked Questions
Are weekly options profitable?
Weekly options can be very profitable due to accelerated theta decay, allowing premium sellers to collect time value faster. However, they also carry higher gamma risk - prices can move quickly against you. Success requires strict position sizing (1-2% per trade) and clear exit rules.
What are 0DTE options?
0DTE (zero days to expiration) options expire the same day they're traded. They offer maximum theta decay and leverage but come with extreme gamma risk. Popular for day trading SPX/SPY, they require significant experience and strict risk management. Not recommended for beginners.
Related Resources
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