To The Moon

The introduction of short-dated options, such as those with Monday and Wednesday expiries, presents both new opportunities and risks for traders and investors. For some symbols like SPY and QQQ, options contracts can now expire every day from Monday to Friday. Impact on Hedging and Volatility Hedging: The availability of more frequent expiries allows for more precise hedging against specific, short-term events like earnings announcements or economic data releases. Investors can use strategies like a Collar with Stock, which involves buying a put for downside protection and selling a call to finance the cost, to create a protective range around their stock position for a shorter duration. This can be more cost-effective than using longer-dated options. Volatility and Risk: Short-dated optio

The introduction of short-dated options, such as those with Monday and Wednesday expiries, presents both new opportunities and risks for traders and investors. For some symbols like SPY and QQQ, options contracts can now expire every day from Monday to Friday. Impact on Hedging and Volatility Hedging: The availability of more frequent expiries allows for more precise hedging against specific, short-term events like earnings announcements or economic data releases. Investors can use strategies like a Collar with Stock, which involves buying a put for downside protection and selling a call to finance the cost, to create a protective range around their stock position for a shorter duration. This can be more cost-effective than using longer-dated options. Volatility and Risk: Short-dated optio