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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (24056)	8/28/1999 1:20:00 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 99985

I am hoping for a nice decline Monday. I will be buying again. I missed 1/2 the upside this week on Msft and Csco but got a nice chunk.

To: Lee Lichterman III who wrote (24056)	8/28/1999 4:57:00 PM
From: Elroy Jetson	Respond to of 99985

Firms like First Security, although expensive, are great for people who have nearly all of their net worth locked up in options or restricted stock of the company they work for. They lend 90% of the current value of your stock, at say 16% interest. But they use part of your interest payments to buy long-term out-of-the-money Puts. This is why the borrower is responsible for the first 10% of the stock decline. The risk holder is the party that sold the Puts.