Weekly Options Provide Higher Premiums for Covered Calls

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Financial education service CoveredCalls.com unveils an investment technique to generate income from selling Weekly options. Selling covered calls using the new Weekly options can be a way to generate higher returns than selling traditional monthly options. Premiums from Weekly options can be up to double those of standard monthly options, in comparable timeframes.

Weekly options returns

Weekly options returns

Premium returns from selling covered calls on Weekly options varies from about 0.5 percent per week, up to 6 percent per week, depending on market volatility.

Given the recent volatility in the market, investors are looking for ways to more effectively generate income with less risk. Weekly options provide another choice for income investors in this unsure market, while reducing the time required to hold short call options. As of September 8, 2011, there are 76 stocks, ETF’s, and indexes permitted to trade Weekly options. From the data analysis done by the financial education service CoveredCalls.com, 20 of these 76 Weeklys were still returning premiums of over 1 percent, with only two days left to expiration (see attached image for full list), as of close-of-market on September 7, 2011.

The Weekly options list can be found at the CBOE.com website. The premium “seatbelt investing(TM)” (SBI) service at CoveredCalls.com helps investors find, research, and analyze Weekly investments. The SBI list shows the Weekly call bid, the premium percentage return, and important technical indicator values such as the RSI (Relative Strength Index) to help investors make informed decisions.

New Weekly options series are posted each Thursday, except the Thursday prior to the third Friday of each month (which is the standard monthly options expiration day). During this week of the normal monthly options expiration, the last week of the monthly option is used as the Weekly option surrogate.

Premium returns from selling covered calls on Weekly options varies from about 0.5 percent per week, up to 6 percent per week, depending on market volatility. Risk can be controlled by purchasing put options as insurance on the underlying stock or ETF, and the SBI service shows these “insurance policies” on the Weekly options table at CoveredCalls.com.

CoveredCalls.com will be hosting a live webinar on Saturday, September 10, 2011, at 12:00 noon (Eastern Time) where a preview of the premium “seatbelt investing(TM)” (SBI) service will be shown, and the Weekly options data table will be demonstrated live.

DATE: Saturday, September 10th, 2011

TIME: 12:00 noon (Eastern Time)

To register for the live preview webinar: https://www1.gotomeeting.com/register/459415568

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Shane Johns
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