Manrhphlpr Mpralii Manchester, Conn

20 - MANCHESTER HERALD. Mon., March 22. 1982 BUSINESS Weinberg favors | Shuttle pilots report Pea fas, norses] capital spending some tiles missing and blue cross Trading in stock index futures risky ... page 3 ... page 4 . ... page 13 Should you, an average investor, have a fling at margin, it the index moves against you. Realistically, option plus a few hundred dollars. The New York Stock Exchange plans several speculating in futures on stock market indexes, the you'd almost surely liquidate the contract before going options on its stock indexes, the principal newest way to "gam ble" in the market? down to "zero.” v Recently, the Kansas City Board of Trade began Several,congressmen, warning of the high risks of on the NYSE composite index. At Manchester, Conn. the value of such an option contract would b e ^ u t $ ,- Clear tonight; trading in "futures” on the Vaiue Line Index, an un Y o u r trading in stock index futures, have asked for hearings. 6 400 but the premium cost would be around $500 (for a Tues.. March 23, 1982 weighted average of the prices of 1,685 stocks, M o n e y ' s One member of the federal commission thatregulates sunny Wednesday calculated by the investment firm of Arnold Bernhard Si futures trading has also warned that amateurs might be nine-month option). Single copy 25q; Co. lured into this highly sophisticated type of trading. — See page 2 manrhpHlpr Mpralii W orth If this trading on stock index futures and/or options In a few months, exchanges better known than Kansas If you think the average level of stock prices is on the turns into a boom, it could create a problem of shifting Sylvia Porter City’s probably will offer stock index futures. The New way up, you can buy a futures contract at the current money from buying/selling new stocks into just York Stock Elxchange, through its Futures Exchange, price, for settlement in June, September, December or gambling on old stocks. This could “ thin out” the stock next March. If you’re right, and the index goes up more intends to offer these contracts, and so does the Chicago Board of Trade. prices. than enough to cover your commissions, you could make Whether this actually will occur will depend on how, If you are tempted, may advice is: Wait until options on a profit. If you believe the average price of stocks wiil many of you plunge into the new forms of speculation. At recent price levels, a futures contract on the Value indexes com e on the marxet, later in ’82. They are now drop, you sell 9 futures contract, and you make money if Don’t. Despite the lures, DON’T. Line Index is worth about 862,000. To get in on the index going through government clearance — and, for most of the market declines enough to cover your costs plus a (“ Sylvia Porter’s 1982 Income Tax Book,” her com action, you must put up a margin of percent or about us, will have many advantages over stock futures. profit margin by the date specified in vour contract. 10 prehensive guide to income taxes, is now available So should you 'play?” 1) No. IF speculation is your $6,200. That's less than 50 percent margin or $31,000 you ' An option gives you the right to buy or sell stock at a through her column. Send $3.95 plus $1 for mailing and Cheap gas, wouldhave to put down to buy $62,000 of stock on credit, given price at some future date without actuaily buying aim, a better way will com e soon in the form of options handling to “ Sylvia Porter’s 1982 Income Tax Book,” in the stock. The face value of the options may run into bn stock market indexes. but it is still substantial. care of this newspaper, 4(X) Johnson Drive, Fairway, thousands of dollars, but you can buy an option for a 2) Futures on stock market indexes require putting up Stock index contracts are settled in cash rather than Kan. 66205. Make checks payable to Universal Press a lot of money, the risks are great — and your chances delivering the actual stock total. Theoretically you fraction of that amount. And if you guess wrong in Syndicate.) of winning are not that good. could lose your margin down payment, plus additional buying an option, your maximum loss is the price of the car rebates Solar energy projects cut inflation under way on land, sea WASHINGTON (UPl) - Inflation If you slowed to a 3 percent annual rate in Consumer Prices February, with cheaper gasoline Index UP 0.2% in February cuts reduce the present effort. can’t see By LeRoy Pope man Donald T. Beldock of Basic and new car rebates holding back Inflation Slowa To A 3% Resources points out, "Sunlight and He says solar energy ultimately consumer prices for the second Annual Rata UPl B u siness Writer \ sea water are inexhaustible and could replace 20 percent of the oil them ... straight month, the Labor Depart and gas consumed by the utility in NEW YORK — The federal free,” so the thermal efficiency Microcracks no larger ment reported today. isn’t critical. dustry and also produce a lot of government has made two new than 1,100th the The February Consumer Price $900,000 awards to firm's competing Beldock said the proposed com process steam and heat for various Index for February went up only 0.2 diameter of a human 280 if to develop plans for a 40-megawatt mercial 40-megawatt sea thermal industries. Thermal efficiency is percent, an improvement over commercial sea thermal energy plant would be at least a $400 million expected to be 15 to 20 percent. hair are difficult to see, January’s extremely moderate plant. venture. The general commercial Solar towers that actually so Dr. Michael Shea of figure of 0.3 percent At the same time, a group of 21 feasibility of sea thermal ener^ generate electricity on a smaii scale the General Motors Because of the extraordinary electric utilities known as Western was proven by the state of Hawaii in have been bult in Spain, Japan and Research Laboratories deflation in gasoline and auto 270 Energy Supply & Transmission a pilot scale plant. The present com Italy but the American plant near In Warren, Mich., has prices, the government’s overall (WEST) Associates is appealing for petition is to prove feasibility o f a Albuquerque, N.Mex., is strictly for learned to listen for transportation price index went testing the design and efficiency of continued and increased’ govern specific project. them. Shea theorizes Herald photo by Tarquinio down for the month by 0.7 percent, It has potential values beyond the the various components and of the 260 Oood* coating 6100 ment support for another form of that the cracks relieve its steepest decline in nearly 13 solar energy. Central Thermal generation of electricity. overall engineering and architec years. In 1007 now coat $ 2 8 3 .4 0 Receivers. These are huge Conceivably the electricity tural concepts. Internal strains caused Rolling out spring Gasoline prices plummeted by 2.3 assemblies of mirrors called generated could be used to crack sea Hulse says the WEST group is not by carbon atom percent for the month alone and new water and get usable hydrogen fuel only eager that the Albuquerque test rearrangement In 250 Qmmn heliostats focused on a boiler Golfing season Is upon us with the advent of spring, and Fred favorite time of year, and he said he Is bringing several carts to cars were 0.8 percent cheaper, the M A M J JASOND’JF mounted on a tower that makes and other valuable products at installation be maintained but that hardened, ^igh-carbon Atwood, manager of Golf Car Rental Service Inc. of Bolton, the Manchester Country Club In preparation-for opening the department said. 1981 '8 2 steam to generate electricity. economic cost. the project to build an entire 10- steel and.'be’s trying to prepares to drive off In one of his carts. Spring Is surely his season. Fuel oil and coal prices also The competing teams in the sea' The Solar Thermal Central megawatt solar central receiver learn more about them. dropped by 0.4 percent. thermal energy competition are led Receivers also are ah old idea power plant at Barstow, f^lif., be The small monthly increase in moderate 0.4 percent rate in whose time appears at last to have completed. by Basic Resources Corp. of New UPl photo prices, if repeated for the next February. York and General Electric Corp. come. The Russians tried it years The 21 utilities also want the Eighth twelve consecutive months, would Medical care costs, tlie highest Sea thermal energy also is solar ago by mounting mirrors on railroad government to appropriate $6 add up to a yearly rate of only 3 per item among the major categories of energy because it depends on the flat cars on a circular track so they million for study of a program to cent, the Labor Department said, prices for the past year, were up sun heating the surface of the sea. could get the sun at any orientation. retrofit an existing fossilfired unit the lowest inflation rate since an another 0.7 percent in February, First proposed by the French They concluded it was technically of an electric utility with this kind of July 1980, when a wild swing in part of the 11.9 percent increase in scientist.

Load more