Dec

13

What If, from Yanki Onen

December 13, 2006 |

These words are written by a soul who partly has paid his dues to the almighty Market, with all respect much more has been learned since the first day I had the chance to get my hands on The Education of a Speculator, and I have learned even more since I have started reading it for the second time around.

I am going to try to be brief and to put all the facts right up front.

I don’t have the experience nor the knowledge of many you have been accomplished with, but my senses and creativity have always been to my benefit at this ongoing endeavor … I have some ideas which are open for debate and further testing.

The first quarter of 2007 revisions to Regulation T are expected to take effect, which will calculate the use of options for margin purposes. Just like in futures exchanges all that means is a lot more leverage …

PVX Provident Energy Trust:

Total Distributed - 2001 $2.54 $1.64
Total Distributions Declared Since Inception $10.95 $7.98
Average yield since inception %9 -%11
Effective Margin Interest rates %5.5

Options For June 07
10 Call 1.30
10 Put 0.40

Stock Price $11.11 …

Suppose you write the call, long stock and long put, margin deposit per 100 shares after new regulation takes effect $30 (indication) — yes I am aware of the new tax regulations on Canadian trusts which are to take effect in 2011, and yes also the exchange rate risk … but what if

Wait you didn’t even hear my ideas on Fed Funds binary options, or LME Zinc options … Thank you for your precious time.


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