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Strategies & Market Trends : January Effect 2005
IWM 263.98-0.3%Jan 26 4:00 PM EST

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To: rrufff who wrote (18)12/29/2004 3:01:29 PM
From: semi_infinite   Read Replies (1) of 76
 
"very low premium at this point. Do you really think they are worth the potential risk with very small upside"

Valid concerns and I think you will need to wait for a pull back on the ones that don't have enough meat. I was able to get sndk 1.25, mlnm 1.50 and qlti 0.70 when the stocks dipped recently (sndk just yesterday). The alternative is to buy the ITM calls, eg. sndk jan or feb 22.5. Selling ATM puts has been my preference and with low option premiums, buying ITM calls is OK but still not my preference. If we have guts, we would do this back in Sep/Oct and get real fat premiums. You get some winners (eg. osis) and clunkers (eg. algn) hopefully lots more winners than clunkers.
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