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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: regli who wrote (43850)	1/4/2006 10:11:29 PM
From: Casaubon	Read Replies (1) \| Respond to of 116555

you clearly don't understand how to make money with covered call plays.

To: regli who wrote (43850)	1/4/2006 10:33:17 PM
From: LLCF	Read Replies (2) \| Respond to of 116555

ABX sells to I-banks in the OTC market. Margin calls are probably spelled out in the paperwork of those contracts. They are certainly not held to NYSE or COMEX rules for OTC contracts. That said, Ashanti had OTC hedges and had margin calls by their bank (long side of the contract)... sooooooo I would think if ABX was really in some scary position and in doubt of delivery the bank would have them in court already. BWTFDIK <Why couldn't they hit trouble much earlier as their losses mount with a rising gold price?> Unless they're stupid they sell contracts that are due when expected production could be delivered. Stupidity is a concern however. :)) DAK

To: regli who wrote (43850)	1/4/2006 10:34:44 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

I have discussed this with Heinz and I believe his take is the same as mine. I also believe but am not certain that there are rules about when stuff has to be marked to market. That is one of the things that nailed Fannie Mae for instance. But.... Fannie Mae was inconsistant in how they did things and that is a no no. I am GUESSING ABX does NOT have to mark those to market by SEC rules. Mish