Graphic Strip - Derivatives

​Weekly Options

Weekly Options – Expiration opportunities each week!

Are you interested in diversifying your investment portfolio? Would you like to hedge your portfolio more efficiently against major market events expected to unfold within the near future and do so with relatively low margin? If so, you should familiarize yourself with weekly options (“weeklies”).

Except for the shorter life span, the terms of weekly options are identical to those of the more standard monthly options.


Who can benefit from weeklies trading?

Relative to alternative hedging strategies, margin requirements for weeklies are low. 
By enabling trading for an additional expiration date, weeklies also provide investors with a picture of trader expectations regarding the volatility of the underlying asset over time.
 
Weeklies engender certain advantages to option buyers and writers alike. For buyers, the short life span renders these options considerably less expensive than longer-term options. Option writers benefit from the accelerated time decay as expiration approaches.
 

Weeklies on TASE

In July 2013, the Tel Aviv Stock Exchange joined the club of exchanges offering weekly derivatives by launching weekly options and futures on its flagship equity index, the TA-25 index (currently: TA-35 Index). The weekly options trading volume in these instruments is on an upward trajectory.

 
Given the success of the TA-25 (currently: TA-35) weeklies, TASE launched weekly derivatives on foreign currency exchange rates on November 1, 2016.

Weeklies are suitable for a wide array of investors, including those seeking to more effectively hedge their portfolio against events expected to affect the market in the short term.
 
Opening new series of weeklies

TA-35 Index: Weekly options open for trading on Thursdays, excluding the Thursday two weeks before the expiration of monthly options. Usually, two weekly series will be traded each day.

Dollar exchange rate: Weekly options open for trading on Tuesdays, excluding the Tuesday two weeks before the expiration of monthly options. Usually, two weekly series will be traded each day.

FAQ - TA-35 Index
What is the last trading day for a series of weekly derivatives?
How is the final settlement price set for weekly derivatives?
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  FAQ - Dollar exchange rate
What are weekly derivatives?
What is the last trading day for a series of weekly derivatives?
What is the difference between weekly and monthly derivatives?
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