DayTrading the OEX Message Board

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Strategies & Market Trends : DayTrading the OEX

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To: Steve Robinett who wrote (63)	6/4/1998 11:33:00 PM
From: Aaron Weiss	Read Replies (1) of 94

Steve, Yes, I figure that with so little time remaining I wanted to minimize time decay and get a delta of as close to one as possible. My principal motivation was to hedge other equity-related holdings, not to grab a quick double or triple in a low-premium OTM put. With the OEX at 522, the 540 had about $18 of intrinsic value and $2 of time premium. Any lower strike put contained too much time premium as a percentage of the option's price. If I had a futures account, I would have implemented the hedge by shorting the appropriate number of SP500 contracts. Aaron

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