Daytrading OEX options with a method, not a trading system Message Board

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Strategies & Market Trends : Daytrading OEX options with a method, not a trading system

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To: HiSpeed who wrote (29)	10/13/1998 10:08:00 PM
From: ratan lal	of 62

Elementary my dear Watson - Time Premium really starts to deteriorate as expiration gets closer. Now its only 3 days away. On Friday at close there will be ZERO time premium. Also, AT ANY GIVEN MOMENT IN TIME, if you compare the premium on CALLS and PUTS at any given strike price you will find that the premium on one is greater than the other. That simply means that the MM are expecting the market to go in the direction in which the premium is higher. Today, for example, when DOW was down 100 the calls had a bigger premium that the puts simply shwoing that they expected the market to recover. If you had bought CALLS when the market was down 100, it would have to go up quite a bit for you to make any money. UNLESS you bought WAY INTO THE MONEY CALLS on which the premium was negligible. Its THEIR game. DOnt for a second believe that they made the rules for you to make any money.

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