There is time decay in a long option position. Over a short term it has only a slight effect. Over a long term it can really hurt. Over 2 years, Nasdaq down over 30% and RYVNX and USPIX both down as well: <A HREF="http://finance.yahoo.com/q?d=c&c=RYVNX&k=c1&t=2y&s=uspix&a=v&p=s&l=on&z=m&q=l&y=on" target="_new">http://finance.yahoo.com/q?d=c&c=RYVNX&k=c1&t=2y&s=uspix&a=v&p=s&l=on&am...</A> Over 1 year, Nasdaq down 20% and RYVNX and USPIX about breakeven: <A HREF="http://finance.yahoo.com/q?s=USPIX&d=c&k=c1&c=RYVNX,^ixic&a=v&p=s&t=1y&l=on&z=m&q=l" target="_new">http://finance.yahoo.com/q?s=USPIX&d=c&k=c1&c=RYVNX,^ixic&a=v&p=s&t=1y&l...</A>