Regular vs Weekly Options: Which is Better for Traders?
“Trading success comes not from knowing everything, but from knowing which choices fit your strategy.”
Introduction
When traders in India step into the world of derivatives, one of the first questions they face is whether to trade regular (monthly) options or weekly options. Both look similar on the surface, but the way they behave in terms of expiry, liquidity, time decay and risk is very different.
If you are confused about regular vs weekly options, you are not alone. Many new traders jump into Bank NIFTY or NIFTY contracts without understanding how the expiry cycle changes their profit and risk profile. Choosing the right type of contract can make the difference between consistent gains and unnecessary losses.
In this guide, we will break down the key differences between regular and weekly options, highlight the pros and cons of each and help you decide which one fits your trading style. Whether you are an option buyer looking for short-term moves or an option seller focusing on steady income, this article will give you the clarity you need.
What are Regular (Monthly) Options?
Regular options, also known as monthly options, are the original format of options contracts that traders have been using for decades. In the Indian market, these contracts expire on the last Thursday of every month. If the last Thursday is a trading holiday, the expiry happens on the previous working day.
For example, if you are trading NIFTY or stock options, most of them still follow the monthly expiry cycle. These contracts usually have higher open interest and are well-suited for traders who prefer slightly longer holding periods.
Monthly options allow traders to capture moves that play out over weeks rather than days. They are often preferred by:
- Swing traders who like to hold positions for multiple sessions.
- Option sellers who want to benefit from slower time decay compared to weekly contracts.
- Investors using strategies like covered calls or protective puts for hedging.
Since monthly options expire less frequently, they can be less stressful for beginners. You don’t need to constantly adjust your trades every week, which makes them attractive for those who don’t want to be glued to the screen every Thursday.
In the debate of regular vs weekly options, monthly contracts stand out for their stability and suitability for longer-term strategies.
What are Weekly Options?
Weekly options are shorter-duration contracts that expire every Thursday of the week. In India, they were first introduced on Bank NIFTY and because of their popularity, they later expanded to NIFTY 50 and FINNIFTY. Some stock options also have weekly expiries, but they are generally limited to the most liquid counters.
The biggest appeal of weekly options is their flexibility. Instead of waiting an entire month for expiry, traders get a fresh set of opportunities every week. This makes weekly contracts highly attractive for intraday traders and option sellers who want to capture rapid time decay.
Key features of weekly options include:
- Frequent expiries: Every Thursday brings a new settlement.
- Faster time decay (theta): Premiums drop quickly, creating opportunities for sellers.
- High liquidity: Especially in Bank NIFTY and NIFTY, where most trading volume is concentrated.
- Short-term focus: Suitable for traders who prefer quick entries and exits.
However, this speed also comes with added risk. Weekly options can be more volatile, especially near expiry and require active monitoring. A single news event or market swing can wipe out premiums quickly.
In the regular vs weekly options comparison, weekly contracts stand out for traders who want fast-paced action, higher flexibility and frequent opportunities, but they demand sharper risk management.
Key Differences Between Regular vs Weekly Options
While both contracts serve the same purpose, there are some clear differences that every trader should understand. These differences impact risk, margin usage and the type of strategies you can use. Let’s break them down one by one.
1. Expiry Frequency
- Weekly Options: Expire every Thursday.
- Regular Options: Expire on the last Thursday of each month.
This means weekly contracts offer more frequent opportunities, while monthly contracts give more breathing space.
2. Liquidity & Volume
- Weekly Options: Extremely liquid in NIFTY.
- Regular Options: Decent liquidity, but activity picks up closer to monthly expiry.
3. Time Decay (Theta Impact)
- Weekly Options: Premiums lose value faster, especially in the last two days.
- Regular Options: Time decay is slower, spreads out across weeks.
This is why option sellers often prefer weeklies for quick premium collection.
4. Margin Requirement
- Weekly Options: Lower premiums but frequent adjustments needed.
- Regular Options: Higher initial margin, but fewer rollovers required.
5. Trading Flexibility
- Weekly Options: Better for intraday and short-term setups.
- Regular Options: Suitable for swing trades and positional strategies.
6. Volatility Impact
- Weekly Options: More sensitive to news events and market shocks.
- Regular Options: Less reactive on a daily basis, but can move significantly near expiry.
Comparison Table: Regular vs Weekly Options
| Feature | Weekly Options | Regular (Monthly) Options |
|---|---|---|
| Expiry | Every Thursday | Last Thursday of the month |
| Liquidity | Very high (NIFTY, Bank NIFTY) | Moderate to high |
| Time Decay | Very fast near expiry | Slower, more gradual |
| Risk Level | Higher, requires active watch | Lower, more stable |
| Best For | Intraday traders, scalpers | Swing traders, positional setups |
| Margin Use | Frequent adjustments needed | Fewer rollovers, more predictable |
When comparing regular vs weekly options, it’s clear that weeklies favour fast-paced, high-frequency trading, while monthlies give more stability and less stress.
Pros and Cons of Weekly Options
Weekly options have become extremely popular in India, especially in Bank NIFTY and NIFTY contracts. Their short expiry cycle gives traders more opportunities, but it also comes with extra risks. Understanding the advantages and disadvantages of weekly options will help you decide if they fit your trading style.
✅ Pros of Weekly Options
- Frequent Trading Opportunities
Every Thursday brings a new expiry, which means traders can set up fresh strategies multiple times a month instead of waiting for a single monthly cycle. - Faster Time Decay (Theta Advantage)
Weekly contracts lose value quickly as expiry approaches. This rapid decay is highly beneficial for option sellers who earn by collecting premiums. - Lower Premiums
Since weekly options have a shorter life, their premiums are usually cheaper compared to monthly contracts. This allows traders to enter positions with less capital. - Flexibility for Short-Term Strategies
Ideal for scalping, intraday setups, straddles, strangles and iron condors that benefit from quick moves or fast time decay.
❌ Cons of Weekly Options
- Higher Volatility Risk
Because of the short expiry, weekly contracts are more sensitive to news, events and sudden market swings. A small move can wipe out premiums within minutes. - Requires Active Monitoring
Traders need to watch positions closely and adjust quickly. Missing a single move can result in heavy losses. - Not Beginner-Friendly
New traders often get attracted to cheap premiums but underestimate the risks. Weekly options require experience and strong risk management.
In the debate of regular vs weekly options, weeklies clearly stand out for active traders who thrive in fast markets. However, they are less forgiving and demand discipline, making them better suited for experienced option traders.
Pros and Cons of Regular (Monthly) Options
Regular options, also called monthly options, remain the backbone of the derivatives market. They move at a slower pace compared to weeklies, making them suitable for traders who prefer stability and less frequent adjustments. Let’s look at the strengths and weaknesses of monthly contracts.
✅ Pros of Regular Options
- More Stability
Monthly contracts do not react as sharply to daily market moves. This makes them more predictable and less stressful to manage. - Better for Swing and Positional Traders
Traders who want to hold positions for weeks—such as covered calls, protective puts, or debit spreads—find monthly options more reliable. - Slower Time Decay
Unlike weekly options, the premium erosion happens gradually. This allows traders to stay in positions longer without facing aggressive theta decay. - Less Frequent Adjustments
Since expiry comes only once a month, traders don’t need to roll over or adjust positions as often, which reduces trading pressure.
❌ Cons of Regular Options
- Slower Premium Collection
For option sellers, time decay is slower in monthly contracts, which means income builds up at a gentler pace compared to weeklies. - Higher Premiums
Because they cover a longer time frame, monthly options usually have higher premiums. This may require more margin for selling strategies. - Fewer Trading Opportunities
With only one expiry per month, traders have fewer chances to reset positions, unlike the multiple setups available in weekly contracts.
When comparing regular vs weekly options, monthly contracts appeal to traders who value stability, controlled risk and longer-term strategies. They are especially suitable for beginners who want to avoid the intense pace of weekly trading.
Risk Management in Options Trading
Which is Better for Traders?
The choice between regular vs weekly options depends less on which is “better” overall and more on which matches your trading style, risk appetite and available time. Both have unique strengths and the right one for you will depend on how you approach the market.
- For Active Intraday Traders:
Weekly options are usually the better fit. Their frequent expiries, high liquidity and rapid time decay allow intraday traders and scalpers to set up trades with quick profit potential. - For Swing and Positional Traders:
Regular (monthly) options are more suitable. Their slower pace and gradual premium erosion make them ideal for holding positions across weeks, without the constant pressure of adjusting every Thursday. - For Option Sellers:
Weekly contracts are attractive because of faster theta decay, but they demand sharper risk management. Monthly contracts, on the other hand, offer more stability and smoother income for conservative option sellers. - For Beginners:
Monthly options are generally safer. The slower time decay and lower volatility allow new traders to learn without facing the intense swings of weekly contracts.
✅ Simple Rule of Thumb:
- If you enjoy fast-paced, high-frequency setups, weekly options may suit you better.
- If you prefer stability, patience and fewer adjustments, regular (monthly) options are the smarter choice.
In short, there is no single winner in the regular vs weekly options debate. The right choice depends on your goals, risk tolerance and how much time you can dedicate to monitoring your trades.
Strategies Suitable for Weekly vs Regular Options
When it comes to option trading, not all strategies work equally well across different timeframes. Weekly options and regular (monthly) options each have their own strengths and traders must choose strategies that align with these unique characteristics. Let’s break it down.
Strategies for Weekly Options
Weekly options are short-lived contracts, which makes them highly sensitive to time decay (theta). Because of this, option sellers often favor weeklies. Some popular strategies include:
- Iron Condor on Weekly Options: With rapid time decay, an iron condor can generate quick income if the stock remains within a defined range.
- Credit Spreads: Selling call or put spreads on weeklies allows traders to benefit from both theta decay and elevated implied volatility.
- Short Straddle/Strangle (with caution): These can be profitable when implied volatility is high, but strict risk management is necessary due to unlimited risk potential.
Weekly options are best suited for traders who actively monitor positions and can handle short-term market fluctuations.
Strategies for Regular (Monthly) Options
Monthly options have more time until expiry, which makes them less sensitive to daily time decay. These contracts are ideal for longer-term strategies and investors who prefer a steadier pace. Common approaches include:
- Covered Calls: A classic strategy where traders sell calls against stock holdings, generating consistent premium income.
- Protective Puts: Monthly puts are effective for hedging portfolios against downside risks over a longer horizon.
- Calendar Spreads: This strategy takes advantage of different time decays by selling near-term options and buying longer-term ones.
Monthly options are better for traders who prefer stability and are not looking to adjust positions every few days.
Choosing the Right Fit
Weekly options provide speed and quick results, but they demand precision and discipline. Regular options offer more breathing room, making them suitable for swing traders and investors with a medium-term outlook. By aligning the right strategy with the type of option contract, traders can maximize profits while managing risk effectively.
FAQs on Regular vs Weekly Options
1. Can I trade both weekly and monthly options?
Yes, you can trade both weekly and monthly options depending on your trading style and risk appetite. Many traders use weekly options for short-term strategies like credit spreads or intraday setups, while they prefer monthly options for strategies such as covered calls or protective puts. Combining both can help balance quick profits with stable, longer-term opportunities.
2. Do all stocks have weekly options?
No, not all stocks have weekly options available. In India, weekly options are mostly offered on popular indices like NIFTY, along with some highly liquid stocks approved by the exchanges. Monthly options, however, are widely available across most F&O-listed stocks.
3. Which is safer: weekly or monthly options?
Monthly options are generally considered safer compared to weekly options. Since they have more time until expiry, they allow traders to manage positions with less pressure from rapid time decay. Weekly options, while attractive for quick profits, can be riskier due to their short duration and faster premium erosion.
Conclusion: Regular vs Weekly Options
Choosing between regular vs weekly options depends on your trading style. Weekly options suit active traders seeking quick profits, while monthly options offer more stability and time to manage risk. Many traders use a mix of both to balance speed with consistency.
To trade smarter, explore our option strategies, calculators and guides at TheSilentTrader.in — designed to help you plan, analyse and optimise every trade.
