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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (38104)	9/10/2003 9:42:26 PM
From: rolatzi	Read Replies (1) \| Respond to of 74559

<<I think I use the longer dated options because I am (a) greedy, (b) lazy, and (c) want to be able to close the put/call positions during the longer interim.>> Jay, I use shorter dated options because (a) I am greedy and maximum loss in time value is expiration month (b) not lazy which requires more selling and covering and (c) want to have my options expire worthless and not leave time value on the table. Perhaps, I should try going with the bid price but I always think that the options are too pricey. How is it that you are the market maker? Why don't you worry about paying too much for the option. The bid ask spread is usually a couple of tenths and the options I sell are generally a dollar or two. That means that I am giving the market maker a large percentage of the option price especially if I have to cover before expiration. It looks to me like the market has topped out. Miners may go down with the rest of the shares. Don't forget that September is the worst performing month in terms of percentage of the time down (61.3%) and the average loss (1.37%). October is down only 44.4% of the time and it shows an average gain of 0.18%. Ro