Jeff--
Arrrgggghhh.
As far as the MSH is concerned, it's pretty wild. Timing is tricky as it moves so very fast. An example: I dumped my 390s for 6 1/4; less than an hour later they were down to 3 3/4. (Yeah, shoulda turned around and got calls.) You really do have to sit on the thing. Or your broker does: as we know, accurate options info is hard to come by on the Web. (In fact I wasn't getting the chain from tradepbs, perhaps because the thing was moving so fast.)
Clearly the thing has the potential to be much more fun (and much more dangerous) than the OEX or SPX. Two major points in its favor: 1) premiums are relatively reasonable compared to OEX stuff, so you get lots more bang for your buck; and 2) oddly enough, at least at the moment it seems that if you buy five points out of the money you'll actually do better than if you'd bought on the money.
And, to add a third point: you have a pretty good chance of guessing which way it'll move (and I should think that with experience you'll be able to guess how much), as it's composed of major tech stocks and nothing else.
Definitely worth considering.
Janice
(and then turned around and bought puts again, and who knows where one should be by the end of the session) |
