Market Sense and Sentiment

[bbgold]

Hi Bernard, I have been trying to watch the DJX Options to see just how much of a percentage change can be achieved when the index moves a point. It does not seem to me that the Option chain listed at Bigcharts updates very often. So far it seems as though most any of the options close to expiration, January, have the Greatest percentage change relating to the index movement. Of course that also means that they have the greatest risk if you predict a move incorrectly. The Time premium that you have to pay for DJX options is substantial also. The Put side seems to be $1 per point per month. The Call side for In the money calls seems to be slightly higher than $1 per point per month and out of the money calls selling at a lower time premium. The percentage gains from the extended expiration dates are also lower than closer expiration dates. Therefore if you are looking for the Maximum percentage gain then playing the Options closest to expiration involves less capital expenditure and a higher return IF you are correct about a move. I need to find a website that has a quicker update to the option pricing to see just how much of a trading range an option may have intraday though.

Markets are getting close to their lunchtime rally point. Time to take a look at DJX 102 or 103 Calls?

Good Luck Bernard! :^)