I paid $1.80 a contract for the DIA JAN/09 at 8900 level and after Dow dropped over 320 points to 8580 level, I only managed to sell it for a slight gain at $2.00 a contract. Normally, this should have been over $3 for a whopping 50+% gain. What a bad day to play the options.
Bank on this: When the market moves against your position, you will see your contract devalued quickly. Moves in your favor and you will be going, that's it?? Funny how that works. Kinda like having to lay vig to a bookie.
I have seen this time and time again lately. I don't know if it is the VIX or what but man when I pick the right direction, the options don't move too much and when I am wrong I get clocked.