Most traders overcomplicate expiration selection. Mike's rule is simple: almost always go monthly, almost always go where the liquidity is.
This episode breaks down the difference between weekly and monthly expiration cycles, why the bid-ask spread alone should push you toward the monthlies, and how implied volatility is distributed across the term structure. Near-term cycles carry the bulk of IV value, which is great when you're selling into earnings but dangerous when you're buying options hoping for a directional move.
One exception to the monthly rule: binary events. If there's an earnings announcement, the weekly cycle makes sense. Everything else stays in the monthly cycle.
š tastylive:
tastylive.com
š° Get Tom's pre-market analysis every morning:
tastylive.com/newsletters
š FREE Options Strategy Guide:
tinyurl.com/bp9ms763
š± Follow tastylive on X:
x.com/tastyliveshow
Chapters
0:00 Options Expirations Overview
0:45 Monthly vs Weekly...