One important thing to note when trading options is that at the end of the month, options are a lot more expensive. This is because the monthly options of the present month had just expired. Traders turn their attention to the options of the next month.

What happens at the end of the month is that a lot of big players will "sell" options. Options will carry high premiums (For instance, November options right now are expensive!). Through volatility, the premiums quickly evaporate. Then, they buy them back at a lower price later. This is why you will often find that during the 4th (and 5th, if there's one) week of a calendar month, the market is often range-bound and volatile. Then, on the first or second trading day of the new month, the market suddenly makes a big movement. You can check on this with a chart of SPX.

So, during this time, it is better to trade lightly, especially during an earnings month (ie, January, April, August, and October). These are the times when you see stock-picking environments.

Really, the best time to trade options, when you can buy options at lower premiums and often catch bigger movements, is the first and second week of every calendar month. Not only are the premiums lower, it also gives you enough time for your trade to work out. Because the premiums are lower, if you are trading within-the-money, the value of the options don't change as much.

We used to be able to trade weeklies more effectively. Things have changed dramatically during these past few years. The volumes on the weeklies are not as high any more. So, if you want to trade weekly options, it's better to find ones that have high volumes. This actually goes with monthlies as well. You should always pay attention to the "Open Interest" of the options that you are looking to trade.

Good night and HappyTrading! ™