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Based on your claim that further out options are not cheaper than front month option in order for me to compare I need to know how do you calculate the monthly cost of the further out options.

I am not sure I know then how do you calculate the monthly cost of the options with the expiration time of more than 1 month.

Maybe you just need to buy cheaper options with further out expiration date.

Why? That's why they are called volatile events because they tend to make a strong move.

It's better to buy straddle before earnings announcement.

Have you tried S&P 500 or Rusell 2000 instead? In case you didnot know Russel 2000 doubled its values since 2001 market crash.

I've bought his book 'McMillan on Options' while ago at really low price on half.com. It was a good read in general.

Kastro, piece of advise, instead of being trader just try to be an investor - one cannot bust his account there.

It means you are making some money now. You need to know when to take your profits?

Kastro, are you short or long on USD?

Yes, we do. We trade anything that oscillates.

So what you're saying? That the latest research in TA works very well but the classical TA migt not?

TA is stupid because it does not work for majority of people who use it. And because majority of traders use TA it explains why 90% of traders fail.

My point is that 90% of people fail not because they are stupid but because they learn something inheritently flawed. And if you go to any bookstore you see that 99% of trading books are on technical analysis. That's my take.

What else? As far as I know that's the most popular & advertised way to trade anything - from stocks to forex & futures. The people who succeed are the ones who do not use it. There is nothing wrong with people in general. The technical analysis is stupidity by itself.

90% of people don't make it just proves that technical analysis does not work.

They prices can be manipulated down no doubt about that but if the company is really good & profits are growing every quarter the low price won't stay forever & the stock will find the buyers really soon. After all the short sellers should buy at some point & because this is small company it...

I don't believe it's possible to manipulate the stock price all the way to 0 through shorting it. If the company is good the buyers should step in and the institutions should be one of them. If the could manipulate the price down they could certainly manipulate the price back up once again.

Never heard of it. Is it in spot forex?

Ok then throw in AUD/JPY to the mix. The more uncorrelated pairs you have the better hedged is your portfolio. Diversification is a good hedging tool. I would like to see some kind of index equivalent to S&P 500 in forex.