The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “Are weekly options a better alternative than monthly options?” I don’t think the answer to this question is that it's one or the other. I think there are certain instances where weekly options contracts might offer a better return in the long run versus a certain monthly contract. But overall, we generally like to trade monthly contracts and what we’ve seen in back-testing is that the tradeoff that you get when you start trading monthly contracts versus weekly is you get a little bit more stability in your portfolio and you have dramatically lower drawdowns. What we’ve seen in research… And I encourage you to go use our toolbox software and use our research on Option Alpha and look at this for yourself. But what we’ve seen in back-testing millions and millions of trades and strategies and tickers over the last 20 years is weekly options contracts do have high return numbers.