Update 3-Feb-2011: Schwab recently added weekly and quarterly option support to all their trading platforms. See here for more information.
Update: In March 2011 Schwab plans to introduce StreetSmart Edge™, their new flagship trading platform. Among other things this platform will include, “Major options trading improvements, including the ability to trade weekly and quarterly options.”
When SPY dropped to 111 this morning I started feeling better about writing some calls. All my weekly options from last week were assigned and I was not unhappy about being in cash earlier this week. I bought SPY at 111.07 and wrote SPY 111 calls at .85 —they expire Friday. My breakeven point is 110.22 and my best case profit is .78 per share which is 0.7% on my investment.
I called the Schwab options desk recently (877-673-7959) and they said that they do plan to offer weekly options, but not for a while. The person I talked to said it would probably be a month or two.