1. Understanding Weekly and Monthly Options
Monthly Options
Also known as standard expiry options.
These options expire on the last Thursday of every month in markets like India (NSE).
They have been around since the inception of exchange-traded options.
Provide a longer duration of time value and stable premium structure.
Weekly Options
Introduced to provide short-term trading opportunities.
These options expire every Thursday (except monthly expiry week).
Much shorter lifespan—often just 5–7 days.
Popular in instruments like Nifty, Bank Nifty, FinNifty, and stocks (limited list).
2. Time Value & Theta Decay
One of the most important differences between weekly and monthly options is theta decay—the rate at which option premium loses value as expiry approaches.
Monthly Options
Have slower theta decay in the early weeks.
Premium erodes gradually.
Most decay accelerates in the last 7–10 days before expiry.
Suitable for swing and positional option selling.
Weekly Options
Have very fast theta decay.
Premium can melt drastically 2–3 days before expiry or even intraday.
Perfect for intraday and short swing theta-based strategies.
But risky for buyers since rapid decay eats premium quickly.
In short:
Sellers benefit more from weeklies due to rapid premium erosion.
Buyers must time entries well or risk losing premium quickly.
3. Liquidity & Bid–Ask Spreads
Monthly Options
Generally deep liquidity, especially in indices like Nifty.
Bid–ask spreads are narrower.
Easy to place big orders.
Weekly Options
Liquidity varies by strike.
ATM and near strikes have excellent liquidity in Nifty & Bank Nifty.
But far OTM strikes or stock weeklies may have wider spreads.
Bottom line:
Weekly options = high liquidity in popular indices.
Monthly options = stable liquidity across many strikes.
4. Volatility Impact (Vega)
Monthly Options
Higher vega.
More sensitive to changes in implied volatility (IV).
Good for volatility-based strategies like straddles, strangles, long vega positions, calendar spreads.
Weekly Options
Lower vega.
Less sensitive to IV unless close to events like results or macro announcements.
Therefore:
If you want to trade volatility → choose monthly options.
If you want to trade quick moves/time decay → choose weekly options.
5. Cost & Premium Differences
Monthly Options
Higher premiums because more time value exists.
Suitable for:
Hedging
Swing options buying
Calendar spreads
Position building
Weekly Options
Much cheaper premiums due to short life.
Allows:
Quick scalping
Event-specific trading
Intraday buying and selling
But sharp moves can wipe out premiums fast.
For buyers:
Monthly = safer, but slower.
Weekly = cheaper, but high risk.
6. Risk Differences
Risk in Weekly Options
Very high for buyers due to theta decay.
High for sellers during volatile sessions.
Strikes can become worthless within minutes near expiry.
Very sensitive to intraday big moves (gamma risk).
Risk in Monthly Options
More stable, controlled decay.
Better for hedged strategies.
Lower intraday gamma exposure.
Gamma exposure:
Weekly > Monthly
Means weekly options react faster to price moves: good for directional traders, dangerous for late sellers.
7. Which Is Better for Option Buyers?
Monthly Options
Better for buyers because:
More time for the trade to work.
Slower premium decay.
Good for swing/positional directional trades.
Weekly Options
Useful only when:
You expect a sharp, fast move (e.g., news, breakout, expiry day momentum).
Intraday or same-day scalping.
General rule:
Buyers prefer monthly options.
Experienced intraday traders may buy weeklies for quick momentum.
8. Which Is Better for Option Sellers?
Weekly Options
Best tool for sellers.
Rapid theta decay = high edge.
Ideal for:
Short straddles/strangles
Credit spreads
Iron condors
Intraday selling
Expiry day option selling
Monthly Options
Used for safe, hedged, non-aggressive selling.
Good for:
Covered calls
Calendar spreads
Iron condors
Protected strangles
General rule:
Sellers prefer weekly for profit.
Monthly for stability and lower risk.
9. Event Trading: Weekly vs Monthly
Weekly Options
Used for:
RBI policy
Fed minutes
Budget week
Elections
Major results (if available on the stock)
Global announcements
Because weeklies allow cheap premia and controlled exposure for short periods.
Monthly Options
Used for:
Longer-term swing trading around events.
Volatility build-up strategies.
Protecting long-term portfolios.
10. Strategies Suitable for Each
✔ Weekly Options: Best Strategies
Intraday scalping (ATM options)
Expiry day straddle/strangle selling
Credit spreads for quick decay
Ratio spreads
Iron flies (expiry week)
Short gamma strategies
✔ Monthly Options: Best Strategies
Long calls/puts (positional)
Calendar spreads (monthly vs weekly)
Diagonal spreads
Covered calls
Vertical debit spreads
Condors for stable markets
11. Who Should Trade What?
Weekly Options – Ideal for
Experienced intraday traders
Scalpers
Option sellers
Short-term event traders
High-risk traders
Monthly Options – Ideal for
Beginners
Positional traders
Swing traders
Hedgers
Risk-averse participants
12. Pros & Cons Summary
Weekly Options
Pros
Fast returns
Low premium
Ideal for intraday/expiry
High theta decay
Great for sellers
Cons
Very risky for buyers
Sudden losses during volatility
Requires precision timing
Higher gamma risk
Monthly Options
Pros
More stable
Less risky
Longer time value
Suitable for swing buyers
Good for hedging
Cons
Slower returns
Higher capital for sellers
Less excitement compared to weeklies
Final Conclusion
Weekly and monthly options serve different purposes. Weekly options provide speed, volatility, and rapid theta decay, making them ideal for advanced traders, especially sellers and intraday scalpers. Monthly options provide stability, safer premiums, and slower decay, making them suitable for swing traders, beginners, and long-term strategists.
A trader can use both depending on goals:
Weekly for tactical short-term trades.
Monthly for strategic long-term positioning.
Monthly Options
Also known as standard expiry options.
These options expire on the last Thursday of every month in markets like India (NSE).
They have been around since the inception of exchange-traded options.
Provide a longer duration of time value and stable premium structure.
Weekly Options
Introduced to provide short-term trading opportunities.
These options expire every Thursday (except monthly expiry week).
Much shorter lifespan—often just 5–7 days.
Popular in instruments like Nifty, Bank Nifty, FinNifty, and stocks (limited list).
2. Time Value & Theta Decay
One of the most important differences between weekly and monthly options is theta decay—the rate at which option premium loses value as expiry approaches.
Monthly Options
Have slower theta decay in the early weeks.
Premium erodes gradually.
Most decay accelerates in the last 7–10 days before expiry.
Suitable for swing and positional option selling.
Weekly Options
Have very fast theta decay.
Premium can melt drastically 2–3 days before expiry or even intraday.
Perfect for intraday and short swing theta-based strategies.
But risky for buyers since rapid decay eats premium quickly.
In short:
Sellers benefit more from weeklies due to rapid premium erosion.
Buyers must time entries well or risk losing premium quickly.
3. Liquidity & Bid–Ask Spreads
Monthly Options
Generally deep liquidity, especially in indices like Nifty.
Bid–ask spreads are narrower.
Easy to place big orders.
Weekly Options
Liquidity varies by strike.
ATM and near strikes have excellent liquidity in Nifty & Bank Nifty.
But far OTM strikes or stock weeklies may have wider spreads.
Bottom line:
Weekly options = high liquidity in popular indices.
Monthly options = stable liquidity across many strikes.
4. Volatility Impact (Vega)
Monthly Options
Higher vega.
More sensitive to changes in implied volatility (IV).
Good for volatility-based strategies like straddles, strangles, long vega positions, calendar spreads.
Weekly Options
Lower vega.
Less sensitive to IV unless close to events like results or macro announcements.
Therefore:
If you want to trade volatility → choose monthly options.
If you want to trade quick moves/time decay → choose weekly options.
5. Cost & Premium Differences
Monthly Options
Higher premiums because more time value exists.
Suitable for:
Hedging
Swing options buying
Calendar spreads
Position building
Weekly Options
Much cheaper premiums due to short life.
Allows:
Quick scalping
Event-specific trading
Intraday buying and selling
But sharp moves can wipe out premiums fast.
For buyers:
Monthly = safer, but slower.
Weekly = cheaper, but high risk.
6. Risk Differences
Risk in Weekly Options
Very high for buyers due to theta decay.
High for sellers during volatile sessions.
Strikes can become worthless within minutes near expiry.
Very sensitive to intraday big moves (gamma risk).
Risk in Monthly Options
More stable, controlled decay.
Better for hedged strategies.
Lower intraday gamma exposure.
Gamma exposure:
Weekly > Monthly
Means weekly options react faster to price moves: good for directional traders, dangerous for late sellers.
7. Which Is Better for Option Buyers?
Monthly Options
Better for buyers because:
More time for the trade to work.
Slower premium decay.
Good for swing/positional directional trades.
Weekly Options
Useful only when:
You expect a sharp, fast move (e.g., news, breakout, expiry day momentum).
Intraday or same-day scalping.
General rule:
Buyers prefer monthly options.
Experienced intraday traders may buy weeklies for quick momentum.
8. Which Is Better for Option Sellers?
Weekly Options
Best tool for sellers.
Rapid theta decay = high edge.
Ideal for:
Short straddles/strangles
Credit spreads
Iron condors
Intraday selling
Expiry day option selling
Monthly Options
Used for safe, hedged, non-aggressive selling.
Good for:
Covered calls
Calendar spreads
Iron condors
Protected strangles
General rule:
Sellers prefer weekly for profit.
Monthly for stability and lower risk.
9. Event Trading: Weekly vs Monthly
Weekly Options
Used for:
RBI policy
Fed minutes
Budget week
Elections
Major results (if available on the stock)
Global announcements
Because weeklies allow cheap premia and controlled exposure for short periods.
Monthly Options
Used for:
Longer-term swing trading around events.
Volatility build-up strategies.
Protecting long-term portfolios.
10. Strategies Suitable for Each
✔ Weekly Options: Best Strategies
Intraday scalping (ATM options)
Expiry day straddle/strangle selling
Credit spreads for quick decay
Ratio spreads
Iron flies (expiry week)
Short gamma strategies
✔ Monthly Options: Best Strategies
Long calls/puts (positional)
Calendar spreads (monthly vs weekly)
Diagonal spreads
Covered calls
Vertical debit spreads
Condors for stable markets
11. Who Should Trade What?
Weekly Options – Ideal for
Experienced intraday traders
Scalpers
Option sellers
Short-term event traders
High-risk traders
Monthly Options – Ideal for
Beginners
Positional traders
Swing traders
Hedgers
Risk-averse participants
12. Pros & Cons Summary
Weekly Options
Pros
Fast returns
Low premium
Ideal for intraday/expiry
High theta decay
Great for sellers
Cons
Very risky for buyers
Sudden losses during volatility
Requires precision timing
Higher gamma risk
Monthly Options
Pros
More stable
Less risky
Longer time value
Suitable for swing buyers
Good for hedging
Cons
Slower returns
Higher capital for sellers
Less excitement compared to weeklies
Final Conclusion
Weekly and monthly options serve different purposes. Weekly options provide speed, volatility, and rapid theta decay, making them ideal for advanced traders, especially sellers and intraday scalpers. Monthly options provide stability, safer premiums, and slower decay, making them suitable for swing traders, beginners, and long-term strategists.
A trader can use both depending on goals:
Weekly for tactical short-term trades.
Monthly for strategic long-term positioning.
I built a Buy & Sell Signal Indicator with 85% accuracy.
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I built a Buy & Sell Signal Indicator with 85% accuracy.
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.