Over the past few years, I’ve used options as a way to generate consistent income from stocks I own or follow closely. Like many traders, I gravitated toward weekly options. They’re fast, frequent, and seemingly efficient. Whether I was writing covered calls on MicroStrategy or selling cash-secured puts on Alphabet, the weekly premiums felt like a reliable source of cash flow.

But recently, I made a strategic shift: I’m moving away from weekly options and focusing on monthly full-term options instead. After diving deeper into the mechanics of option pricing, execution, and market structure, I’ve realized that monthlies offer superior performance in most real-world trading scenarios.

Here’s what changed my mind, and why you might want to reconsider your own approach if you’re still using weeklies as your default.

Weekly Options: What I Was Doing

My earlier approach centered around short-term trades. I’d sell weekly calls or puts to collect premium, targeting short-term moves in names like MicroStrategy (MSTR), Tesla, or Alphabet. The appeal was obvious:

• Faster income cycles
• High annualized returns (on paper)
• Tactical flexibility

But in practice, I noticed several recurring issues:

• Wider bid/ask spreads on anything beyond the front-week
• Low open interest and less competitive pricing
• Higher gamma risk near expiry
• Constant need to monitor, manage, and roll positions

These frictions slowly eroded returns and added more stress than necessary.

Enter the Monthly, Full-Term Option

So what is a full-term monthly option? It’s the option that expires on the third Friday of each month. These were the original standardized options listed by the Options Clearing Corporation (OCC) when listed options began trading in the 1970s.

Weekly options, on the other hand, were introduced much later (2005 by CBOE) to meet demand for more flexibility and short-term trading instruments. While they serve a purpose, they were essentially bolted on to the original system.

And it shows.

The Structural Advantage of Monthly Options

1. More Premium in Real Terms
   Monthly options consistently offer more time value per trade. Yes, weeklies may look more “efficient” per day on paper, but in practice, monthlies return more net premium due to better execution and tighter spreads.
2. Superior Liquidity and Tighter Spreads
   Market makers prioritize monthly expiries. The bid/ask spreads are narrower, meaning you lose less on the buy and sell side.
3. Better Open Interest and Volume
   Full-term options attract more traders. More liquidity = better fills and less slippage.
4. Simpler Management and Rolling
   Weekly positions expire quickly, requiring more active management. Monthly options give you breathing room to manage positions deliberately.
5. Lower Gamma Risk
   As weekly options approach expiration, price sensitivity (gamma) spikes. With monthlies, that curve is smoother.

If You’re Holding for a Month Anyway, Use the Monthly

This was a big insight for me: I realized that even though I was trading weekly options, I was often holding them for 2–4 weeks before rolling or closing. So why not start with the monthly to begin with?

Instead of targeting an August 30th expiry (a weekly), I now look at the August 16th full-term option. Or even better, go out to September 20th, sell the call, and manage or roll it earlier if needed.

You’re not locked in. You’re just operating on more favorable terms.

Why Weeklies Can Look Tempting: Volatility Magnifies the Premium

One of the big reasons I leaned into weekly options — especially with names like MicroStrategy (MSTR) — was the sheer volatility. When a stock regularly moves 5–10% in a week, the premiums on short-dated options get inflated fast. That meant:

• Juicy implied volatility (IV) priced into the premiums
• The ability to quickly collect income, sometimes multiple times in a month
• An opportunity to sell rich options even when far out-of-the-money

And it worked — for a while. MSTR’s wild swings made weeklies feel like an income machine. But as I looked deeper, I realized that those rich premiums came at a cost:

• Assignments became more frequent and harder to control
• Bid/ask spreads on later-dated weeklies were sloppy
• Managing positions every few days started to feel like a job

It became clear that even in high-IV environments, the structural advantages of monthly options often win out, especially when you’re trading size or managing a portfolio systematically.

Are High IV Weeklies Really That Much Better?

It’s true that weekly options often show higher implied volatility per day than monthlies. On paper, that makes them look more profitable. But here’s the reality:

Issue	Why It Hurts Weeklies
Wider bid/ask spreads	Slippage reduces your actual collected premium
Thin open interest	Poor fills or difficulty closing positions
Gamma spikes	Rapid, unpredictable price moves near expiry
More frequent management	More trades = more fees + more stress
Assignment risk	Especially with short-dated ITM options

So while weeklies may look more profitable in high-volatility stocks, monthlies often deliver more net premium with less friction, especially when scaled.

Who Weekly Options Are Still Good For

Despite all the advantages of monthly options, there are still specific situations—and traders—for whom weeklies make sense.

• Earnings Plays & Volatility Events: Traders who want to sell options around earnings or Fed announcements often prefer weeklies for their precision. The ability to target a specific date lets you isolate risk to that event window.
• Short-Term Directional Bets: If you’re speculating on a 1–3 day move in a stock, weeklies give you the cheapest and most gamma-sensitive exposure.
• Scalpers and Day Traders: Those managing trades by the hour or day often favor weeklies for their fast-moving nature. They’re nimble tools in the hands of professionals.
• High IV Environments: In stocks with elevated implied volatility (like MSTR), weeklies may offer juicy premiums that justify the risks—if managed closely.
• Exit Tactics: If a monthly covered call is expiring in-the-money, you may prefer to let the shares get called away and switch to puts rather than roll at a poor price. This can be a cleaner transition than forcing a roll for little premium or upside.

In short, weeklies are best for traders who are both tactically aggressive and highly active. They require more time, tighter discipline, and the ability to move quickly. They’re not inherently bad—but they’re often used inefficiently by traders who would be better off with the stability and performance of full-term options.

Final Thoughts

Weekly options are great for tactical plays, earnings speculation, or quick gamma scalps. But for consistent income, clean execution, and strategic control, monthly full-term options are superior.

This isn’t just theory. It’s a shift I’ve made in my own trading, and it’s already improved both my performance and my peace of mind.

If you’re looking for less friction, better fills, and stronger long-term returns, consider making the switch.

Monthly might not sound exciting—but it works.

Investing across borders opens up new opportunities for yield, growth, and diversification. But with international investing comes exposure to foreign currencies—and that means currency risk.If your home currency is the euro, US dollar, or any other, and you invest in assets priced in a different currency (like the British pound, Japanese yen, or Swiss franc), shifts in exchange rates will impact your actual return. Even if the investment performs well in local terms, currency fluctuations can boost or shrink your returns once converted back.Fortunately, there are effective strategies to manage this risk. Below are three simple approaches retail investors can use—along with a deeper look into how currency-hedged ETFs actually work.

1. Use Currency-Hedged ETFs

Best for: Investors who prefer a hands-off approach

Many ETF providers offer currency-hedged versions of their funds. These are designed to deliver the performance of the underlying investments while neutralizing the impact of currency movements relative to your base currency.

How does this work in practice?

Fund providers use rolling forward contracts—agreements to exchange currencies at a set rate on a future date. Each month (or sometimes weekly), the ETF manager enters into new contracts that match the value of the underlying portfolio. If the foreign currency weakens, gains from the forward contract offset the loss. If the currency strengthens, the gain in value is canceled out—but your exposure remains aligned with the core asset, not the currency.

This type of hedging is mechanical and systematic, often with little to no day-to-day impact for the investor. You just hold the fund as you would any normal ETF.

Examples for euro-based investors:

• iShares MSCI Japan EUR Hedged UCITS ETF
• Xtrackers FTSE 100 EUR Hedged UCITS ETF

How to do it:

• Log into your brokerage account
• Search for the hedged version of the fund (look for your currency and the word “hedged” in the name)
• Review the factsheet to confirm hedging frequency and method
• Buy as you would with any ETF

This approach works well when your goal is to track the equity or bond performance of a specific market, without letting currency fluctuations interfere.

2. Build a Natural Hedge Through Portfolio Diversification

Best for: Long-term investors with global exposure

A natural hedge uses the principle of balance. By holding assets in different currencies and regions, you avoid the risk of being overly exposed to just one. If one currency drops, gains in others may cushion the impact.

For example, an investor who holds:

• US stocks (USD exposure)
• Eurozone real estate (EUR exposure)
• UK dividend stocks (GBP exposure)
• A global bond ETF (mixed currency exposure)

…is unlikely to suffer major damage from a single currency movement.

How to do it:

• Analyze your portfolio by currency exposure
• Identify concentration risks
• Add international exposure gradually across geographies
• Rebalance once or twice a year

This approach relies on long-term alignment and reduces the need for ongoing management or financial products.

3. Use Forward Currency Contracts (with Help)

Best for: Larger portfolios or investors working with private banks or advisors

Forward contracts allow you to lock in a specific exchange rate for a future transaction. These are useful if you expect to sell an asset or receive dividends and want to fix the future cash flow in your local currency.

Banks or asset managers typically manage this process. For example, an investor planning to repatriate £100,000 from a UK investment next year might agree to exchange it at a fixed rate today, protecting against adverse currency moves.

How to do it:

• Contact your advisor or bank
• Ask about currency hedging using forwards
• Match contract dates with your expected income or exits

Final Thoughts

Global investing introduces currency risk, but this doesn’t need to be a source of stress. Whether you prefer the simplicity of a hedged ETF or the elegance of long-term portfolio balance, you have the tools to control your exposure. Choose the method that fits your strategy and move forward with confidence.