Weekly vs monthly expirations¶
Expiration is not only a calendar date. It changes how fast your P&L can move and how often you must make decisions.
Not financial advice
Educational material only.
A simple preference (you can change it)¶
| Choice | Spruce starter stance | Tag |
|---|---|---|
| Default for income-style credit spreads | Prefer monthly (or longer) expirations | [operator preference] |
| Weeklies | Allowed, but smaller size and stricter event checks | [operator preference] |
| Hold to expiry vs close early | Write your own rule; both are valid processes | Your policy |
Why monthlies feel calmer for many people¶
Near expiration, option prices near the money can swing harder (higher gamma). Ultra-short dated shorts demand more attention. If you review trades in batches after work, fewer expirations in flight usually means fewer surprises.
That is a process argument — not proof that monthlies always make more money.
Earnings still come first¶
Whatever expiration you pick, a stock can gap overnight around earnings, and implied volatility often behaves differently into and after the report. [verified]
The risk policy proposes blocking new short premium inside a window before earnings (starter idea: about five trading days). The exact window is [operator preference].
Decide for yourself¶
Ask — and write the answers where you will see them later:
- Do I default to monthly credit spreads?
- If I use weeklies, what is the maximum share of portfolio heat I allow in very short-dated trades?
- When a spread is threatened, is my default to close, roll, or hold?
What to do next¶
Sources¶
Not financial advice. Verify broker rules yourself.