Mini, Weekly, and Quarterly Options Explained

Beyond standard monthly options, exchanges offer products with different expiration frequencies and contract sizes. Weekly options expire every Friday, quarterly options align with fiscal periods, and mini options control fewer shares. Understanding these variations helps you match products to specific trading needs.

Definition and Key Concepts

Weekly Options

Weekly options expire each Friday (or the last trading day of the week). They offer:

• Short-term exposure (typically 1-5 days when purchased mid-week)
• Lower absolute premium than longer-dated options
• Rapid time decay as expiration approaches
• Popular for earnings plays and short-term directional trades

Many actively traded stocks and ETFs have weekly expirations available for several weeks into the future.

Quarterly Options

Quarterly options expire on the last business day of each calendar quarter (March, June, September, December). They're primarily used for:

• Hedging aligned with fiscal quarters
• Portfolio rebalancing at quarter-end
• Index options strategies

Mini Options

Mini options control 10 shares instead of the standard 100 shares. Features include:

• Lower capital requirement per contract
• Tighter position sizing available
• Limited availability (only select high-priced stocks)
• Same expiration dates as standard options

Mini options are less common now; availability has decreased significantly since their introduction.

How It Works in Practice

Weekly Options Characteristics

Weekly options experience accelerated time decay because most of their life is spent in the final week before expiration. Consider the theta (daily time decay):

A weekly option purchased on Monday with Friday expiration faces 4 days of maximum decay. This works against buyers but benefits sellers.

Quarterly Options Settlement

Quarterly index options often use AM settlement (based on opening prices on expiration morning) rather than PM settlement. This creates:

• Gap risk overnight into expiration
• Settlement based on individual component opening prints
• Potential differences from overnight index futures levels

Expiration Calendar Complexity

In any given week, you might have:

• A weekly option expiring Friday
• A monthly option expiring (if it's the third Friday)
• A quarterly option expiring (if it's quarter-end)
• LEAPS expiring (if it's January)

Each has slightly different characteristics. Verify which product you're trading before executing.

Worked Example

Scenario: Trading earnings with weekly options

XYZ reports earnings after market close on Tuesday. The stock trades at $75.

Option Choice: Friday expiration weekly

• $77.50 call
• Premium: $1.50
• Days to expiration at purchase (Monday): 4
• IV: 85% (elevated for earnings)
• Delta: 0.35

Post-Earnings Outcomes:

Scenario A: Stock rises to $80 (beat expectations)

• Intrinsic value: $2.50
• Remaining time value: ~$0.30 (IV crushed)
• Option value: $2.80
• Profit per contract: $130

Scenario B: Stock flat at $75 (meets expectations)

• Intrinsic value: $0
• Remaining time value: ~$0.20 (IV crushed + time decay)
• Option value: $0.20
• Loss per contract: $130

Scenario C: Stock drops to $70 (misses expectations)

• Intrinsic value: $0
• Remaining time value: ~$0.05
• Option value: $0.05
• Loss per contract: $145

The weekly option allows targeted earnings exposure with limited capital at risk. However, the combination of time decay and IV crush means the stock must move significantly in your direction to profit.

Alternative: Monthly option (21 DTE)

• $77.50 call
• Premium: $3.00
• Delta: 0.38

Same beat scenario: Option worth approximately $4.00, profit $100. The weekly provided higher percentage return but required the move to happen immediately. The monthly offers more time for the thesis to develop.

Risks, Limitations, and Tradeoffs

Time Decay Acceleration

Weekly options decay rapidly, especially in the final two days. Buying options with less than 5 DTE means fighting against maximum theta. Unless the underlying moves quickly and substantially, time decay erodes value.

Liquidity Variations

Not all weekly expirations have equal liquidity:

• The nearest weekly typically has the best liquidity
• Weeklies 3-4 weeks out may have wider spreads
• Not all strikes are actively traded for each expiration

Check open interest and bid-ask spreads before trading less-liquid weeklies.

Rolling Complexity

Managing positions with weekly expirations requires more frequent decisions. If a weekly trade hasn't worked by mid-week, you must decide to:

• Close for a loss
• Roll to next week (incur additional transaction costs)
• Let it expire worthless

Monthly options provide more time for patience.

Quarterly Settlement Risk

AM-settled quarterly options can settle at unexpected levels. If the market gaps overnight, your puts or calls may settle differently than the prior close implied. Position accordingly if holding through settlement.

Common Pitfalls

1. Underestimating weekly time decay: A small adverse move combined with one day of decay can devastate a weekly position.

2. Overpaying for event-driven weeklies: Implied volatility is often highest for the expiration immediately after an event.

3. Confusing expiration dates: With multiple weekly expirations listed, it's easy to select the wrong one.

4. Ignoring settlement type: Know whether your quarterly option uses AM or PM settlement.

5. Assuming mini options are available: Mini option availability is limited; check before planning positions.

Checklist for Non-Standard Expirations

• Verify the exact expiration date (weekly/monthly/quarterly)
• Check settlement type (AM vs. PM) for index options
• Assess liquidity: bid-ask spread and open interest
• Calculate time decay for remaining days to expiration
• Factor in any events (earnings, dividends) between now and expiration
• Consider transaction costs for frequent trading of weeklies
• Confirm contract size (standard 100 shares vs. mini 10 shares)
• Plan exit strategy before entry—weeklies require faster decisions

Next Steps

For longer-term option strategies, LEAPS provide multi-year expiration dates. Learn about these extended contracts in LEAPS and Long-Dated Contracts.

For background on how ETF options compare to stock options across these expiration types, see Options on ETFs vs. Single Stocks.