Weekly Options
Weekly options are short-termed options that will generally have the same product specifications as the standard contracts listed on that product. Weekly options are usually listed with at least one week until expiration. Some products will list weekly options with up to five consecutive weekly expirations provided the weekly listing would not expire on the same date as a currently listed monthly contract. Weekly options may be listed on equity, ETF or index products. View a full list of products with available weekly options.
Unit of Trade: Equity or ETF: 100 shares of the underlying; Index: One contract equals $100 (the index multiplier) times the index level.
Premium Quotations: Stated in points. One point equals $100.
Strike Price Intervals: Strike listing will generally mimic that of the standard product, with less of a range of strikes. Weekly option strikes may also be listed in .50-point increments when the monthly contracts are listed in 1-point increments.
Exercise Style: The exercise style for weekly options will be the same as for standard options on that product.
Exercise Settlement Time: If it's an equity or ETF weekly option, exercise notices tendered on any business day will result in delivery of the underlying shares on the first (T+1) business day following exercise. Index options are cash-settled on the next business day following exercise.
Expiration Dates: Weekly options will expire on the date listed on the contract.
Exercise Settlement Price: Cash-settled weekly options on index products will derive their settlement value in a similar manner but perhaps not at the same time as standard options on that same product. The dollar difference between the index settlement value and the strike price of the contract multiplied by 100 will be the value of the contracts. (Note: See product specifications for each index as there may be different methods of calculation. Know all the product specifications including how and when settlement price is derived before entering into positions.)
Position Limits: Limits vary according to the number of outstanding shares and trading volume. The most active stocks have an option position limit of 250,000 contracts; smaller capitalization stocks may offer position limits of 200,000, 75,000, 50,000 or 25,000 contracts. Some ETF position limits may be even higher than 250,000 contracts. Customer hedge exemptions are available. Index option limits will vary, as will their weekly options, so investors can check the position limit reports.
Minimum Customer Margin: Purchases of puts or calls must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 20% of the aggregate contract value (current equity price x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. Margin requirements for index products and some broad-based ETFs may vary.
*For calculating maintenance margin, use the option's current market value instead of the option proceeds.
Trading Hours: Weekly options will have the same trading hours as monthly options for that product. Equity options - 9:30 a.m. to 4:00 p.m. ET. ETF options will trade the same hours as the underlying ETF. For most ETFs, this is 9:30 a.m. to 4:00 p.m. ET. For certain broad-based ETFs, 9:30 a.m. to 4:15 p.m. ET. Broad-based indexes - 9:30 a.m. to 4:15 p.m. ET. Industry-specific indexes - 9:30 a.m. to 4:00 p.m. ET. Expiring weekly options on some ETF and index products may cease trading at 4 p.m. ET, or 15 minutes before the non-expiring options on that same class cease trading.