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Why I cannot short and long the same contract with the same expiration date? Is it illegal? With options I can go long puts & calls with the same strike price and the same maturity and it will produce the same ( or about the same) P/L as with contracts. My point is that if one really wants to do...

I would say it's legal and it's called spread. Maybe you want to consider deep in the money options as a nice alternative.

I am not sure what you mean by 'dollar collapse' . As far as I can see dollar is already bottom rock cheap.

I bet that equlibrium for Nasdaq ( and Nasdaq100 ) shows that it's in a bear market now or getting close to it.

I am kind of confused by your statement that quartely equilibrium for SP500 is still rising. On March 31 the SP500 was at 1294. On June 30 it was at 1270. This definetely indicates at a declining trend. Can you explain?

I am not aware of any such fact. You are probably referring to the far out of the money options. Most of them might expire wortless but even they can be profitable.

BKCurrency, I agree with you that FXoptions tend to have a very wide spread therefore they are very expensive. But I disagree with your second statement that all options expire worthless: Options lose at expiration only their time value not all their value. To the first poster: check out...

Maybe 85% of all options expire worthless but once 15% are in the money the loss compensates fully for those collected premiums on 85% of them. What do you think all those pricing models for?

I would not recommend to do business with a company that does not respond to the emails.

Let's say you have $1000 in your account. And you are using 5% of your account for one trade which is $50. And your leverage is 100:1 meaning you can trade a position of $5000 which makes your leverage effectively $5000:$1000 = 5:1. There is nothing wrong in your strategy because of your low...

Sell short fxe.

Just try to do it first by hand to see if it really works before you go to write a program.

Yes, P/L is the same. But in case one does not care about unrealised P/L & just wants to collect an income ( meaning that his only concern is that they will expire wortless at maturity) then the timing for that is different.

Yes, the risk/reward ratio is virtually the same. But in terms of generating the income as was discussed in the previous post you have to be bullish on stock to collect income for naked puts & you have to be bearish on stock to collect income for covered calls. So strategically they are different.

Why is that? CC generate income when the stock goes down. Uncovered puts generate income when the stock goes up.

Americans can hedge against the rising gasoline prices by using the public transportaion.

Here is another good article that holds a totally opposite view. Go figure. http://today.reuters.co.uk/news/newsArticle.aspx?type=personalFinanceNews&storyID=2006-04-28T124841Z_01_CAS846017_RTRUKOC_0_MARKETS-GOLD-PRICES.xml

I find it hard to short the dollar at this levels.

$99 a month.

Buy1Sell2, since you increase your position you are not doing the 'covered call writing', right?