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Hiding Bear

B4 The Bell Thursday August 5

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LLD-it's about time you got your sorry Ass back here-How could you let that Germ Crapper get under your skin! Welcome home pal!

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Guest Icky Twerp
we face a looming massive energy crisis

we face a looming massive debt crisis

we face a looming massive human health (not health care) crisis

 

neither candidate's war record seems particularly relevant in light of these pink elephants in the living room.

 

the fact that neither party is cognizant of or is offering a plan to deal with any of these crises, does seem relevant.

 

have fun out there

HERE's some @#$@#%@#$@ common sense. . .

 

Pragmatically, one might vote democratic on the Pres race, to stir things up, since a wholesale "throw the rascals out" ain't gonna happen. . .

 

I think a lopsided majority of stoolies believe that the only Senator or Congressman that shouldn't automatically be stood up against a wall is our boy Ron Paul. Myself, I'm not even so sure about HIM...8^)...

 

But I'm not convinced that, in another 4 years, that either Bush or Kerry would still be in office, recognizably in charge, or compes mentes . . . these issues mentioned by MJ, each alone, could upset the apple cart, and together, will leave nothing but some kindling stained with applesauce -- and I would add certain other meterological, sociological, political, societal issues with trend lines turning determinedly down synchronously, too.

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Re Canadian Gas Prices- as I said yesterday I filled up for $2.57@ Gallon Canadian well tonite it is $3.04 Canadian @ Gallon-didn't take long for todays record high to filter thru to the pumps did it!

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Jimi- No they have been selling calls for months , and they have received a nice premium, that is the main reason the p/c ratio has been so low. When the market drops like a stone the value of their stock drops like a stone and far exceeds the value ,of the premium received so they have buy the calls back and sell the underlying stock to cover margin. All the borkers have had their clients and a lot of the funds do it for months saying hey it is free money. But when the market plummets the worm turns.

Is this the deal:

 

1) Sell call.

2) Collect premium.

3) Use premium to purchase shares of XYZ.

4) Watch market fall like stone.

5) Get a margin call.

6) Sell part of XYZ position to raise cash for maintenance margin.

7) Encourage market to fall like stone.

8) Generate margin calls elsewhere among others.

9) Repeat steps 5-8 for a lot of sheeples.

 

Here's the thing that I don't understand, however: The cost of closing out the short call position is far cheaper now, because 1) the underlying has fallen in price & 2) you enjoy the benefit of time decay. Admittedly, the contribution of volatility to the option pricing is a wildcard.

 

The systemic option-selling margin issue makes more sense to me if sheeples have been encouraged to sell puts, whose value are increasing in a declining market.

 

I've never sold options: don't you have to post cash to a margin account for maintenance purposes, or can you use equities for that purpose?

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Jimi- you can use equities as margin and they have. As to the premiums if you want the most premium you sell 6 to 9 months or a year out. So when the market plummets the call doesn't drop much in price but the underlying stock for which you are margined gets crushed and you can't sell the stock to meet a margin call till you've bought back the call..

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And the beat goes on!

 

The Bosch Corporation in St. Joseph, Michigan has announced over 500 employees will be laid-off.

http://www.wndu.com/news/082004/news_36729.php

 

Notes and highlights from Apple's 86-page SEC form 10-Q filing for its fiscal third quarter, released today, including notes about [additional layoffs]

http://www.macnn.com/news.php?id=25746

 

Sykes likely to close another call center in Marianna

Bill Stanton, executive director of the Jackson County Development Council, said the expected loss of a client is to blame for the Marianna layoffs.

http://www.kansas.com/mld/kansas/business/9328680.htm

 

Emulex Plans 'Modest' Layoff

?Our actions in this quarter are consistent with that statement,? she said when asked if Emulex would announce layoffs

http://www.lightreading.com/document.asp?s...ng&doc_id=57410

 

Kimberly-Clark layoffs hits the Harlem Valley

Shockwaves of the recent Kimberly Clark layoffs have reached the Harlem

Valley.

http://www.zwire.com/site/news.cfm?newsid=..._id=71557&rfi=6

 

Bristol Myers Squibb Company announced today it will lay off more than 100 employees.

http://news10now.com/content/all_news/?ArID=25357&SecID=83

 

Sony Music, BMG Complete Merger

The new company, called Sony BMG Music Entertainment, is expected to begin widespread job cuts

http://www.reuters.com/newsArticle.jhtml?t...storyID=5890115

 

SCM Microsystems to lay off up to 25 percent

reported a narrower second-quarter loss but warned that it plans to cut job costs by ... as many as 90 people

http://sanjose.bizjournals.com/sanjose/sto...tml?jst=b_ln_hl

 

Dow to cut more than 160 W.Va. jobs as part of restructuring

The cuts affect between 120 and 130 salaried workers and 25 to 35 union employees, about 10 percent of Dow's Kanawha Valley work force.

http://www.mlive.com/newsflash/michigan/in...35123172760.xml

 

Chem Co. Will Sell 350,000-SF Bldg.

The Paris-based company has been downsizing globally, and the job cuts here leave it with more space than it can use

http://www.globest.com/news/88_88/newjersey/125293-1.html

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Jimi- you can use equities as margin and they have. As to the premiums if you want the most premium you sell 6 to 9 months or a year out. So when the market plummets the call doesn't drop much in price but the underlying stock for which you are margined gets crushed and you can't sell the stock to meet a margin call till you've bought back the call..

As you no doubt know, selling at the money covered calls on stock is the same as selling naked puts (excluding dividends). In the case of covered calls, your gain is limited to the call premium, but your max loss is the stock price less the call premium. That is the exact same profile as selling a naked put.

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Guest Icky Twerp

I'm presuming a bounce is expected tomorrow. . .

I'm delighted to be contradicted, evenmoreso to be proven wrong on the morrow.

 

I expect the dippers and manipulators to be out in force, but it doesn ot affect my overall outlook, at all. . .

 

Waiting breathlessly for the TA Chartists to weigh in tonite. . .

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Guest Icky Twerp

and dangit, McCain keeps acting like somebody you'd wanna keep around . . .

him making nice with Bush a month ago upset me terribly, as if he'd made some deal -- they must have already double crossed him. . .

McCain condemns 'dishonest' anti-Kerry ad

Associated Press

 

WASHINGTON -- Republican Sen. John McCain, a former prisoner of war in Vietnam, called an ad criticizing John Kerry's military service "dishonest and dishonorable" and urged the White House today to condemn it as well.

 

The White House declined.

 

"It was the same kind of deal that was pulled on me," McCain said in an interview with The Associated Press, comparing the anti-Kerry ad to tactics in his bitter Republican primary fight with President Bush.

 

The 60-second ad features Vietnam veterans who accuse the Democratic presidential nominee of lying about his decorated Vietnam War record and betraying his fellow veterans by later opposing the conflict.

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