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Weekly Options: The Ultimate Guide to Short-Term Trading in 2025
What Are Weekly Options?
Weekly options are derivatives contracts that expire every week, typically on Thursday in India (NSE) and Friday in the US markets. They allow traders to take short-term positions on stocks or indices with lower premiums and faster price movements.
Originally introduced to offer flexibility and liquidity, weekly options have become a favorite among intraday traders, scalpers, and swing traders alike.
Weekly Options vs Monthly Options: Key Differences
| Feature | Weekly Options | Monthly Options |
|---|---|---|
| Expiry Frequency | Every week | Once per month |
| Time to Expire | 1–7 days | Up to 30+ days |
| Premium Cost | Lower | Higher |
| Time Decay Speed | Rapid | Slower |
| Use Case | Intraday, scalping, short-term | Swing trading, hedging |
Weekly options are preferred for fast trades and event-driven setups, while monthly options are better for longer positional trades or hedging.
Why Trade Weekly Options?
- Lower Capital Required: Premiums are cheaper than monthly options.
- Fast Price Movement: Delta moves quickly with the underlying, enabling quicker gains.
- Event-Driven Plays: Ideal for trading around earnings, economic data, or policy announcements.
- High Liquidity: Weekly index options like BANKNIFTY and SPY have deep markets.
- Flexibility: Choose from multiple strike prices and expiries each week.
Popular Weekly Options to Trade in 2025
India (NSE Weekly Options):
- NIFTY 50 Weekly Options (Thursday expiry)
- BANKNIFTY Weekly Options (Thursday expiry)
- FINNIFTY Weekly Options (Tuesday expiry)
- SENSEX Weekly Options (Friday expiry)
- Select F&O stocks with weekly options (e.g., RELIANCE, HDFCBANK)
United States:
- SPY (S&P 500 ETF)
- QQQ (Nasdaq ETF)
- TSLA, AAPL, AMD, NVDA – highly liquid weekly contracts
- Weekly VIX options for volatility plays
Top Strategies for Weekly Options
1. ATM Option Breakout Strategy
- Buy ATM call/put when the underlying breaks the first 15-minute range
- Use VWAP or trend confirmation
- Exit with 1.5–2x reward/risk
2. Expiry Day Theta Decay (Selling)
- Sell OTM options with strong resistance/support near expiry
- Profitable if the price stays in range
- Must use strict stop-loss due to risk of spike
3. News-Based Weekly Buying
- Enter with slightly OTM options before known events (e.g., RBI policy, US CPI)
- Quick move = premium spike
- Time your entry after volume confirms
4. Iron Condor Strategy (Advanced)
- Sell OTM call and put spreads on both sides
- Profits if the market stays within a defined range
- Risk defined, but requires precision
Benefits of Weekly Options Trading
- High ROI Potential: Small moves = large % gain on premium
- Frequent Opportunities: 4–5 trades per month per symbol
- Defined Risk: You can choose your maximum loss upfront
- Ideal for Scalpers & Intraday Traders
Risks of Weekly Options
- Time Decay Is Fast: Premiums lose value quickly, especially on expiry day
- High Volatility: Great for profits but dangerous without risk control
- Limited Recovery Time: No room to wait for reversals like monthly contracts
- Overtrading Temptation: Easy access can lead to revenge trades or emotional decisions
Always enter with a plan and clear stop-loss.
Tips for Successful Weekly Options Trading
- Trade with a trend — don’t fight the momentum
- Avoid far OTM options — they decay faster and rarely move
- Use VWAP, RSI, or EMA for confirmation
- Stick to high volume contracts only
- Don’t hold deep OTM options past 1 PM on expiry day
- Exit fast once your target is hit — don’t overstay in decaying options
- Size small: 1–2 lots is better than risking your capital
Example: Weekly Options Trade on BANKNIFTY
- Setup: BANKNIFTY breaks 15-min high with strong volume
- Strike: ATM Call Option (42,500 CE)
- Entry Premium: ₹180
- Exit Premium: ₹260
- Time Taken: 35 minutes
- Profit: ₹80 per lot (₹2,000 per lot)
This example shows how weekly options can offer quick returns in less than an hour.
Tools for Weekly Options Traders
- TradingView / Chartink (Charts & Alerts)
- Sensibull (India): Options analysis, strategy builder
- Opstra / QuantsApp: OI analysis and IV charts
- ThinkOrSwim (US): Real-time scanners, multi-leg options
- Zerodha, Dhan, Upstox: Execution + mobile trading
Use tools that offer fast execution and integrated options chain data.
Weekly Options FAQs
Q: Can I buy weekly options before expiry day?
Yes. You can buy them anytime during the week. Liquidity is best near expiry.
Q: Are weekly options good for beginners?
Yes — if used with proper position sizing and strict risk control. Start with buying options, not selling.
Q: Is it better to buy or sell weekly options?
Buying has limited risk, selling offers better odds but requires margin and experience.
Q: What is the best time to trade weekly options?
10:00 AM to 12:00 PM IST / EST is ideal. Avoid first 5 minutes unless you’re experienced.
Q: What happens if I don’t square off a weekly option?
It will expire and either become worthless or settle based on ITM/OTM rules (physically settled in India).
Weekly Options and Expiry Dynamics (India-Specific)
In India, weekly options follow a unique expiry schedule:
- NIFTY: Every Thursday
- BANKNIFTY: Every Thursday (but soon moving to Wednesday again)
- FINNIFTY: Every Tuesday
- MIDCPNIFTY: Every Wednesday
- SENSEX: Every Friday
Each index has different volatility, lot size, and participation. Traders must consider expiry volume spikes and option decay rates unique to each index. Expiry day setups like “VWAP reversal” or “straddle breakout” work best when paired with weekly contracts.
Final Thoughts on Weekly Options
Weekly options are a powerful instrument when traded with discipline. Their fast-paced nature offers excellent opportunities — but only if you manage risk and avoid overtrading. Whether you’re scalping BANKNIFTY on a Thursday or catching a SPY breakout in the US, weekly options provide both flexibility and focus.
Start small. Focus on process. Let weekly options become your edge — not your enemy.
Mr. Rajeev Prakash
Rajeev is a well-known astrologer based in central India who has a deep understanding of both personal and mundane astrology. His team has been closely monitoring the movements of various global financial markets, including equities, precious metals, currency pairs, yields, and treasury bonds.
