As we come to the end of the year I thought I would put out my favorite blog of 2014. It was a lesson on the weekend effect and how traders roll dates forward to pre-load time decay through the holiday. As we are coming into the double barrel of Christmas and New Year I thought this would be helpful. The short answer is selling options on Christmas Eve will not yield the dough one might think.
Realized vol is still high enough that selling short term options could get you in a heap of worry if the Santa Clause rally holds up.
Sometimes options are too cheap to sell.