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How would you define the strongest? Once you define that you can find the strongest one.

Being the highest in value doesn't imply being the strongest! It's pegged to a currency basket.

Be careful when you say Eurodollar! Eurodollar is a US dollar deposit outside of the US, so it's a short-term interest rate product not a FX product. Euro FX, which also trades on the CME, is the futures contract on the EUR/USD currency pair. EUR/USD pair is the spot market while the Euro...

It's time decay given that the option had only a few days to expiry and a volatility drop.

Risk free, huh!? And what happens if the market sells off?

Take a look at Thinkorswim.

Check out this thread.

Theo is a guy who comes down to the exchange floor once a week and sets the fair values for all the options.:D Theo=theoretical

You kidding, right!? A vertical has a limited risk no matter what happens, if a covered call goes against you the margin req. will grow as well. Anyway, I don't see a problem here, just hedge with futures!

Thinkorswim. Once you're approved for options trading you can trade any strategy you want provided you can meet the margin requirements.

Buying a further out strike option to convert into a vertical spread or trading the index futures.

Do you have an option analysis tool? (If you don't then get it.) Just stick in the trades and see how the spreads behave when you change the stock price and/or time to expiry. The Oct spread has a theta of about 0.2 and the July spread has a theta of about 1.0. So if the stock moves up to...

Coach has pretty much answered for me. (Thanks Phil!)

The biggest issue I have with this spread is that it has 126 days to expiry, so Theta is virtually non-existent and it will remain that way for the next 2 months. Personally, I prefer to trade this kind of spreads with no more than 45 days to expiration.

Look here's the deal. If you want capital guarantee then you have to use a CD or some other risk-free interest bearing instrument. The rest is your risk capital and you can do pretty much anything with it. You can buy Jan 08 options, you can buy 1 month options, you can trade options on...

I gave you an answer! Use the majority of capital for a CD and the rest buy a put, if you think the market is going down. At the end of the year, the worst case the put expires worthless and you still have your 20K from the CD. By the way, it's been known to happen for a CALL to expire...

The simplest and probably the most efficient solution for you is to calculate how much you need to put into a CD now so that you have exactly 20K at year's end. The rest is your risk capital, which you can use to leverage up, but you must use limited risk strategies so that you cannot lose more...

Be a bit more specific in what you wanna do. To hedge long position buy a put, to hedge a short buy a call, but it is a bit more complicated than that.

If you qualify for portfolio margining then this shouldn't be a problem, otherwise reg t still applies.

Do you mean trading options? If you do then you should post in the options forum not in Technical analysis. And this is a very broad question to give you any meaningful answer. It's like asking how to perform brain surgery or fly a plane!