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Depends what chunk of time the 5 and 30 minutes represents.
If the options expire tomorrow, then of course 30 minutes will represent a
fairly significant decay. If the options expire in a month, then it
shouldn't be much of a factor at all.
I haven't done the math, but I can't see 5 minutes representing much time
decay at all until the options are extremely close to expiration.
Of course, much depends on how out of the money/in the money the options are.
>Pete:
>
>I day trade S+P options and seem to get the delta since I'm in the trade only
>between 5 min and 30 min. Do you see time decay go that fast or am I missing
>something?
>
>Marcelo
>
>
>
>Peter2150@xxxxxxx wrote:
>
>> In a message dated 98-08-22 07:31:50 EDT, charlie@xxxxxxxxxx writes:
>>
>> > don't you all agree there is more bang for your buck if you are day-trading
>> > oex, verses s+p, not to mention NO MARGIN CALL, even if holding only a few
>> > days, the time value is basically irrelevant (spelled right?).
>>
>> Gary
>>
>> I totally disagree with the statement that time value is not
>> important. I used to trade the oex options, and the time value can
>>kill you.
>> At least with the futures, the value of your position doesn't fade away, if
>> the market doesn't move. I can remember buying options, and watching the
>> market slowly drift in my direction, and watching the options lose value
>> because of time decay. You need to both be right about direction, and have a
>> volitle move in that direction. The key to me if you are going to do
>>what you
>> are doing is when you get a thrust in the right direction like we had Friday
>> morning is to take advantage, and take profits, because if the market moves
>> the other way, you have both price and time working against you. My
>> humble opinion.
>>
>> Pete
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