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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sean sanders who wrote (18610)	6/27/1999 3:05:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

Sean, i use calls only to hedge my short positions - i now and then speculate with puts based on the idea that downmoves tend to occur at greater speed than upmoves, so the time decay factor is less important. i have noticed that large swings in the Dow are needed to produce a profit with DJX options; options on individual equities are ultimately the more rewarding instruments for option buyers, as the moves can be larger in a shorter time frame than is the case with the indices. over the longer term it is clearly the option sellers who profit the most. regards, hb