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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (39448)	10/24/2000 10:41:28 PM
From: bobkansas	Read Replies (1) \| Respond to of 57584

Rande...as usual you are so right about profiting often. Whatever calls I purchase will likely be sold within 1 day to 1 week of purchase for hopefully a profits ranging from 35 percent to 150 percent. For example, a ten percent move in an underlying stock can result in a MUCH, MUCH larger upside move in a call option on such a stock. This has taken me a lot of time to study this year so that I do not make real stupid mistakes. With options, a mistake becomes big very quickly. Best regards to you and your better half! Hope she is doing a bit better. Deb says "hi!" Bob

To: Rande Is who wrote (39448)	10/24/2000 11:12:08 PM
From: Petrol	Respond to of 57584

Opinions Wanted: I'm interested in opinions as to why the govt would push through such a bill so quickly AND on the recommendation of Greenspan... why now? ++++++++++++++++++++ House OKs Bill To Reduce Bank Risk biz.yahoo.com By MARCY GORDON AP Business Writer WASHINGTON (AP) -- The House passed a bill on Tuesday designed to reduce risk to the nation's banking system should a major financial institution become insolvent. The measure, supported by the Clinton administration, passed by a voice vote. The legislation would allow a bank or investment firm in bankruptcy-court protection and its creditors to use the net value of the company's losses from derivatives trading in calculations, rather than the much larger gross value. The difference is designed to avoid tying up the trading contracts too long in bankruptcy proceedings. Treasury Secretary Lawrence Summers, representing the administration, and Federal Reserve Chairman Alan Greenspan last Friday urged lawmakers to approve the legislation before Congress adjourns soon for the year. The Senate has yet to act on a similar measure. ``After all, if a major derivatives player were to become insolvent, cascading effects in the economy could too easily ensue,'' the House Banking Committee chairman, Rep. Jim Leach, R-Iowa, said before the vote. An estimated $80 trillion or more in derivatives are traded privately around the globe among financial institutions. Derivatives are complex financial instruments whose value depends on the value or change in value of an underlying security, commodity or asset. Businesses use them to guard against losses from unexpected market movements. Speculators and investment funds trade them as high-risk bets, hoping for huge returns. ``We believe that this is a rare opportunity for government to take an important, tangible step to mitigate systemic risk and improve the integrity of our financial system,'' Summers and Greenspan wrote in letters to House and Senate leaders. The measure adopted Tuesday also is included as a provision in broader legislation rewriting the bankruptcy laws, passed by the House on Oct. 12, that President Clinton has said he will veto. Because of the veto promise, Summers and Greenspan had urged the leaders to adopt the provision as a stand-alone bill. ``It would reduce the likelihood that incidents such as the near-collapse of Long-Term Capital Management in September 1998 would pose a broader threat to our financial system,'' they wrote. Derivatives played a key role in the near-demise of the high-risk hedge fund, which sent shock waves through world financial markets.