Good morning, traders…
Jeff here.
Many options traders spend too much time worrying about the wrong things.
They obsess over finding the “perfect setup.” They overanalyze charts, second-guess their trades, and hold onto positions that are already dead.
But the worst part is that they waste money buying the wrong contracts — either too much time or too little — without truly understanding how time decay, volatility, and execution actually affect options pricing.
Here’s the reality:
- Short-term options (like weeklies) can deliver explosive returns, but only if you know exactly when to enter and exit.
- Longer-term contracts (one month or more) give you time to be right, but they’re expensive and don’t always move like you expect.
- Most traders fail because they don’t execute properly — not because they picked the wrong stock.
That’s why I focus on weekly options using my Burn Notice strategy — a method designed to simplify execution, avoid PDT restrictions, and remove the noise from trading.
Today, I’ll break down:
- The real differences between short-term and long-term options
- The best way to trade weeklies
- How to avoid the traps of time decay
- The dangers of monthly options in a volatile market
If you’re tired of pulling your hair out trying to choose the right contracts, it’s time to pay attention…
Short-Term vs. Long-Term Options
Traders love to debate whether short-term or longer-term options are better. But the answer isn’t the same for any one trader.
It depends on how you trade:
Short-Term Options (Weekly/Daily Expiration)
Pros:
- Lower cost upfront
- Faster profits if the trade works
- Higher gamma (big moves = bigger gains)
Cons:
- Higher risk — they’ll be worthless if you’re wrong
- Time decay is brutal (theta kills you fast)
- You need to be right and on time
Longer-Term Options (1 Month or More)
Pros:
- Less time decay at first
- More flexibility (can ride trends longer)
- Good for anyone who doesn’t want to babysit trades
Cons:
- More expensive contracts
- Slower price movement (lower gamma)
- You can still be right and lose money if the stock moves too slowly
The Battle with Time Decay
Here’s a fact that most options traders ignore: Time decay isn’t linear.
That means an option doesn’t lose value at the same rate every day. The closer you get to expiration, the faster it decays.
Breakdown of time decay:
- 30 days out – You lose a little value each day.
- 10 days out – Time decay speeds up.
- 5 days out – The contract is melting fast.
If you buy a weekly option too early, you’ll watch it bleed out even if the stock doesn’t move against you.
Short-term options demand short-term thinking.
Why Monthly Contracts Are Dangerous Right Now
There was a time when monthly options were the standard. There were no weeklies, and certainly no dailies.
You’d buy a contract 30-60 days out, wait for the stock to move, and profit.
But that won’t work in today’s market.
We’re in one of the most unpredictable, whipsaw-heavy trading environments I’ve ever seen.
Stocks rip 5% one day, drop 7% the next, and options traders get destroyed.
Here’s why monthly options are dangerous in this tape:
- You pay more upfront — higher cost means more risk per trade.
- Theta still eats at you — even if it’s slower, it adds up fast.
- The market is too volatile — you’ll get stopped out before your “longer-term” idea even plays out.
So, which are better — monthlies or weeklies?
I’ll take weeklies all day long — as long as the right strategy is in place…
Burn Notices: The Best Way to Trade Weeklies
If you want fast returns, maximum leverage, and a way to trade without the stress of day trading rules, short-term contracts are where it’s at.
But you must have an edge.
That’s why I use my Burn Notice Strategy — a system I designed to take the guesswork out of execution. Most traders don’t struggle to find opportunities — they struggle to pull the trigger at the right time and exit when they should.
Burn Notices make trading easier in three key ways:
No More ‘PDT Stress’
- If you’re trading with a small account, you know the Pattern Day Trader (PDT) rule is a huge obstacle. You need at least $25,000 in your account to avoid restrictions on day trades.
- But Burn Notices avoid this issue completely — because we enter trades in the last hour of the day (between 3 p.m. and 4 p.m. EST) and hold overnight. That means no in-and-out scalping that could flag your account for PDT violations.
No Need to Stare at Charts All Day
- If you hate staring at stock charts and drawing trend lines, you’ll love this strategy.
- I don’t trade based on squiggly lines — I trade based on numbers. I’m looking at order flow, macro news, and real-time market data to decide when something is underpriced or overpriced.
- That means no confusing technical analysis, no endless pattern hunting — just high-probability setups based on math.
A Clear Ranking System for Every Trade
- One of the hardest parts of trading is knowing which setups to trust. That’s why every Burn Notice trade comes with a 1-3 star ranking system:
- 3 stars = My highest-conviction trades
- 2 stars = Solid setups, but not perfect
- 1 star = Worth watching, but needs confirmation
- This system cuts through the noise and helps you focus on the best trades — without overanalyzing every opportunity.
By using Burn Notices, you can trade weekly options with confidence, avoid overtrading, and stay disciplined — which is the real key to success in options trading.
So, what are you waiting for?
CLICK HERE NOW TO JOIN THE BURN NOTICE ALLIANCE
Happy trading,
Jeff Zananiri
*Past performance does not indicate future results