Replies to post #558 on Market Sense and Sentiment (MKTSS)

[bbgold]

Hi Leapyear! What is your opinion as to paying the high premium for some time on the index options? Do you think that it is Safer to pay the higher premium for the time or Safer to trade the options closer to expiration as the direction of the markets short term may be easier to predict? With the DJX options trading at a premium of $1 per point per month the index would have to move over 3 points in 2 months, 4 points in 3 months, etc and a 1 point move would be a lower percentage return. Whereas a 1 point move in the current month can create a higher percentage change in the options pricing for the current month. They say that time is money but so far it seems as though the premium paid for time on the indexes is fairly High. Any opinion? TIA, Bob :^)