Thread: nnuut's Account Talk

TOMORROW IS:

2007 Options Expiration Calendar, They say this can be good!


Calendar Key Note: Dates accurate as of 1/1/2007, but may be subject to change
Red date = Options (equity, treasury/interest rate, and American-style index) expire
Purple date = Options (equity, treasury/interest rate, and index) stop trading
Italicized date = Expiring currency option classes stop trading; currency option expiration date
Bold date = Market Holiday

October
Su Mo Tu We Th Fr Sa
1.2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31

http://biz.yahoo.com/opt/calendar.html


The Impact of Derivatives on Cash Markets:

What Have We Learned?


Abstract

This paper summarizes the theoretical and empirical research on how the introduction of deriva-

tive securities affects the underlying market. A wide array of theoretical approaches has been ap-
plied to the question of how speculative trading, the introduction of futures, or the introduction
of options might affect the stability, liquidity and price informativeness of asset markets. In most
cases, the resulting models predict that speculative trading and derivative markets stabilize the
underlying market under certain restrictive conditions, but in general the predictions can go ei-
ther way, depending on parameter values. The empirical evidence suggests that the introduction
of derivatives does not destabilize the underlying market—either there is no effect or there is a
decline in volatility—and that the introduction of derivatives tends to improve the liquidity and
informativeness of markets. http://www.terry.uga.edu/finance/res...ers/impact.pdf

Remember BLACK MONDAY? Mini BM!!?

After '87, today's fear is the mini-crash
20 years after the Dow plunged 22% in a day, Wall Streeters aren't too worried about a repeat. But what about a smaller version of that disaster?

By Alexandra Twin, CNNMoney.com senior writer
October 18 2007: 9:37 AM EDT

NEW YORK (CNNMoney.com) -- A lot of Wall Streeters are reminiscing this week about where they were during the 1987 crash. The more recent tumult - in 2001 and even earlier this year - gets lost in the chatter.
The combination of circuit breakers instituted by the NYSE, and the Federal Reserve's willingness to intervene, means a crash on the level of Oct. 19, 1987 - in which the Dow plunged 22.6 percent on a 508-point loss - probably won't happen again.


Remembering Black Monday
On Oct. 19, 1987, the Dow fell 22.6% in a single day. Fortune asked 10 Wall Street veterans to share their memories of the crash.


But that doesn't mean the market won't - and hasn't already - experienced severe mini-crashes that crush investors and roil the markets for days or even weeks at a time.
"Could it happen again? Not to the level of severity as in 1987, but you could see a version of it again," said Kevin Melich, senior portfolio manager at Chartwell Investment Partners.
Remembering Black Monday [more]


http://money.cnn.com/2007/10/16/mark...ion=2007101809

Hi Nnut,
You have been away. Had you been watching news, you'ld know they/the news media have been blustering about this for at least a week now. Its almost gotten to the point of monotony for me. If anything all the bluster from the talking heads has had the effect of a few more bears rummaging around the trash cans lately - maybe a good thing - would'nt you say? Just my 2 sense.

Good history lesson nnuut. For today, there are too many bulls in the marketplace; no fear here.

Originally Posted by hessian

Hi Nnut,
You have been away. Had you been watching news, you'ld know they/the news media have been blustering about this for at least a week now. Its almost gotten to the point of monotony for me. If anything all the bluster from the talking heads has had the effect of a few more bears rummaging around the trash cans lately - maybe a good thing - would'nt you say? Just my 2 sense.

Or maybe, because of the press hype, the bears and bulls left the street and the lemmings are in control? Please, CAT misses expectations by $.03? The world ends? Wachovia misses expectations by 190 mil? Wow, sad day when the markets tank on companies MAKING profit!

I'm really worried about ENERGY PRICES, Oil was over $90 that is a record price for a barrel of LSC!! The funds are all sitting right above support, either they bounce off of support or continue the fall for this reason I think I will stay invested and see what happens Monday. OH, don't follow me, this has been a tough week and I'm getting desparate!!Attachment 2328

Yes, The Market is getting to our emotions
September 7th saw a big hit on Friday. Monday
didn't help with additional loses (smaller). But
then came 9/11 Tuesday and the rebound was
in full swing. Buy on the bad, sell on the good.
My bull ran away, but he'll find his way home.
Lets hope we see him on Monday and look like
financial guru's ! Good Luck To All

I'm with you squalebear, I've got my fingers, toes, legs, arms and eyes crossed!! Tried to cross a couple of other things but that hurt!!

Originally Posted by nnuut

I'm really worried about ENERGY PRICES, Oil was over $90 that is a record price for a barrel of LSC!! The funds are all sitting right above support, either they bounce off of support or continue the fall for this reason I think I will stay invested and see what happens Monday. OH, don't follow me, this has been a tough week and I'm getting desparate!!Attachment 2328

G7 and the present administration will keep gas/oil prices within reason for the next year. I would be shocked if we don't hear some BIG NEWS on the oil prices dropping next week - as things are looking good. According to the real oil experts - and those in the know that have honestly researched this situation YOU HAVE REASON TO BE WORRIED. Over the next year or so I seriously doubt it will make a dent in the markets.

Originally Posted by Steadygain

G7 and the present administration will keep gas/oil prices within reason for the next year. I would be shocked if we don't hear some BIG NEWS on the oil prices dropping next week - as things are looking good. According to the real oil experts - and those in the know that have honestly researched this situation YOU HAVE REASON TO BE WORRIED. Over the next year or so I seriously doubt it will make a dent in the markets.

I hope so Steadygain, we all know that the weak Dollar is one of the many things that are driving the price of energy UP, but the main problem is that it is over priced and I blame that on OPEC and our friend Chavez isn't helping!
Norman
Oil may be lightening up a little down to $88 and droping, might help us out of this hole if it drops around $2. See Oil Slick Stuff!

"S" down 15.35 (2.25%) who would have ever THUNK IT? And headed lower! Attachment 2332