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To: Electric who wrote (33611)	1/20/1998 8:35:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

Electric, Not to sound pompous, but since I started trading with my TA on indexes, the entry point were all very close to the bottom, I nornally get in before the index turns; therefore the premiums have not yet increased on the calls. That could be the reason, I have not faced the problems many talk about. I notice that most systems are based on support lines (long side) being broken then the buy signal steps in as the index is rising and the premiums increase, dramatically at times. I have seen the spread on the NDX CALLS as high as $5.00, while it is moving up. At these times I can see how the premiums become a very large issue - firstly most systems signal after the index has turned up so the upside is already reduced and then the increased premiums. Seeya