There was a very healthy discussion during Tuesday's Trading Group 2 recording that I was unable to attend (I sadly am seldom able to attend) about the use of weekly calls in an M3 trade. I wanted to add to the discussion with a tidbit that may clear up the question of whether or not these weekly calls can and ever are executed with "negative" time premium. It is true that you can have these trades executed at "negative" time premium if you are looking at the T.Prem column in OptionVue; this is because OptionVue defines the time premium for calls as [Market Price] + [Strike] - [Spot]. By following this formula, you will come up with a negative number occasionally for DITM calls with relatively few DTE's. In reality though, the time premium of a cash settled European option is [Market Price] + [Strike] - [Forward]. When the dividend yield of the index is higher than the risk free rate, as it is now, the Forward price will be below Spot. Calculating it this way, I highly highly doubt that you will ever be able to execute a DITM call trade with true negative time premium. This is a pure arb play if there is a listed future and a high probability risk-arb play if there is no future, and computers are likely to gobble it up. So when Tim states that he will sometimes execute these trades with "negative" time premium, I do think based on what OptionVue is telling us, that is correct. But this is no free lunch. The actual time premium is still positive.