Also, pmiles, read Mcmillan's books on options if you have the time. Explains delta, etc. Airedale is an options expert too, if you remember his post on that subject.
It seems to me that if one knows Hurst pretty well (and you seem to) options is the way to go for the most leverage.
I agree that time decay is one of the bigger risks even if you're sure of market direction. After you know the market direction, then precise timing is the key to successful options trading.
I like to think of the options profit zone being like the tiny window for bringing the space shuttle back to Earth. If the descent is too shallow, the shuttle will bounce back into space. If too steep, it will burn up.
Likewise your entry into options needs great precision. I'm exaggerating a bit but not too much.