Stock /Option Trading

Copyright- This document is Copyright © 2005 JCT. It is my intellectual property, and is NOT permitted to be reproduced or distributed at all without my consent.

Table of Contents

I. UNDERSTANDING OPTION PRICING

II. MARKETS TO SELL OPTIONS IN

III. WHAT TO LOOK FOR

IV. OPTIONS ON STOCKS & FUTURES

V. SYSTEMS & FORMULAS

VI. REASONS TO GET OUT AND WHAT TO DO

VII. FOOD FOR THOUGHT... SEASONAL MARKETS

VIII. HEDGE FUNDS & MANAGED FUTURES

IX. DEPENDABILITY

I. UNDERSTANDING OPTION PRICING

Before you can trade options on stocks or futures you should understand the option pricing model. Options are based off the Black and Scholes pricing model which can overestimate option prices during periods of high volatility. This is because the Black and Scholes model requires an estimate of future volatility and future volatility is likely to regress to the mean from the high historical volatility values used as an input. The opposite holds true for instance of low historical volatility were as Black and Scholes tend to underestimate option prices (Black & Scholes doesn’t account for early exercise). Which brings us to Kurtosis.

Kurtosis is an option pricing model which is made up of four statistics, or movements.

1. Mean, (average)
2. Variance, (volatility)
3. Skewness, (asymmetry around the mean)
4. Kurtosis (peakedness) Kurtosis has a very consistent effect of increasing the theoretical value of out of the money options.

The following formula can be used to calculate Kurtosis

E { X - Y } - 4
N O 4 - 3

Where as O is standard deviation. The kurtosis of a normal distribution is 0.

The following two distributions have the same variance; approximately the same skew but differ markedly in kurtosis.

Variance is a measure of how spread out a distribution is. It is computed as the average squared deviation of each number from its mean. For example for the numbers 1, 2, and 3 the mean is 2.

By understanding kurtosis a person can tell what the price should be so if a person wanted to they could get in the trade (sell position) at abnormal prices and buy position back at normal prices. Example... Sell x position for $10 Buy x position for $5 = $5 profit

Legend Y = mean, O = standard deviation, and N is the number of scores.

Data Plot is software that can calculate skewness and kurtosis.

II. MARKETS TO SELL OPTIONS IN

When selling in a market you want volume which equals liquidity. These are a few in the futures market I have always looked at which can satisfy both the needs of a $500,000 or $5,000 account.

Soybeans

Corn

Wheat

Hogs

Cattle

Gold

Silver

DJIA

Long Bond

T-bill

Canadian Dollar

Euro Dollar

Cocoa

Sugar

Seasonal markets: Orange Juice, Unleaded Gas, Heating Oil, Coffee, Cotton, and Natural Gas.

III. WHAT TO LOOK FOR

Uptrend: Long
Higher highs and higher lows usually accompanied by increased volume and open interest.

Downtrend: Short
Lower highs and lower lows with increased volume and open interest.

Double Top: Short
Probable end of an uptrend a double top is a strong indicator that an uptrend has ended.

Double Bottom: Long
Probable end of a downtrend a double bottom would be considered a strong indicator that a downtrend has ended.

Head and Shoulders Top: Short
Indicates major reversal of an uptrend, head and shoulders pattern involves four phases. The formation of the left shoulder, the head, the right shoulder and the penetration of the neckline. Once the neckline is penetrated the downtrend is considered to begin.


Head and Shoulders Bottom : Long
Indicates major reversal of a downtrend, head and shoulders involves four phases. The formation of the left shoulder, the head, the right shoulder and the penetration of the neckline. Once the neckline is penetrated the uptrend is considered to begin.

Examples:

Head & Shoulders Bottom Double Bottom



Triangles: There are three types.


Bullish



Bearish

Bullish
Ascending: Points to a breakout to the upside.


Bearish
Descending: Points to a breakout to the downside.

Symmetrical: Forecasts substantial moves up or down. Look for a one-day closing price above the trend line in a bullish pattern and below the trend line in bearish chart pattern.
Remember, look for volume at the breakout and confirm your entry signal with a closing price outside the trend line.

MACD (Moving Average Convergence Divergence)
MACD is a cross between an oscillator and a moving average. Its unique feature is its use of exponential moving averages.

To calculate a 12 day EMA (Exponential Moving Average) add up the last 12 closes, divide by 12, on day 13 multiply the 13th day close by the exponent, .15 in a 12 day EMA multiplied by the old 12 day average by 1 minus the exponent or .85 in this case then add the 2 numbers. This is the new average.

To calculate a MACD figure a 12 day and a 26 day EMA the exponents are .15 and .75 then subtract the 26 day from the 12 day and plot the difference. This is the MACD line which shows up yellow on a DTN machine. Then calculate a 9 day EMA of that difference, exponent is .2 and plots it, this is the red line on a DTN. Signals are generated when the yellow line MACD crosses the red line. Yellow moving above red is a buy; yellow moving below red is a sell.

Just remember MACD is a trend following momentum indicator that shows the relationship between two moving averages of prices.

RSI (Relative Strength Index)
RSI- is used for identifying overbought or oversold markets and can indicate sudden moves in a market.

The formula to calculate RSI is 100*U+D
U= average change on up days in a period.
D= average change on down days in a period.

If you can participate in large moves and manage money during non-trending time periods you can be successful. The most important element is having multiple profit centers to have the ability to make money in several different market environments.

Here are 3 examples...
1. Momentum based breakout system long term
2. Breakout system based of RSI short term
3. Non-directional and focuses selling option premium.

IV. OPTIONS ON STOCKS & FUTURES

Understanding the Greeks theta, vega, gamma, and delta.

Theta: The ratio of the change in an option price to the decrease in time to expiration. Theta can also be referred to as time decay.

Vega: The amount that the price of an option changes compared to a 1% change in volatility.

Gamma: The rate of change for delta with respect to the underlying asset's price. Mathematically, gamma is the first derivative of delta and is used when trying to gauge the price of an option relative to the amount it is in or out of the money.

Delta: The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative.
First, you should understand that the numbers given for each of the Greeks are strictly theoretical. That means the values are projected based on mathematical models. Most of the information you need to trade options--like the bid, ask,volume, open interest, and last prices--is factual data received from the various option exchanges and distributed by your data service and/or exchanges.
But the Greeks cannot simply be looked up in your everyday option tables. They need to be calculated, and their accuracy is only as good as the model used to compute them. To get them, you will need access to a computerized solution that calculates them for you. All of the best commercial options-analysis packages will do this, and some of the better brokerage sites specializing in options (i.e.OptionVue & Optionstar) also provide this information. Naturally, you could learn the math and calculate the Greeks by hand for each option. But given the large number of positions available and time constraints that would be unrealistic. Personally I like OptionVue.
Delta measures the sensitivity of an option's theoretical value to a change in the price of the underlying asset. It is represented as a number between minus one and one, and it indicates how much the value of an option should change when the price of the underlying stock rises by one dollar. So the normalized deltas above show the actual dollar amount you will gain or lose. For example, if you owned a December 50 put with a delta of -43.2, you should lose $43.20 if the stock price goes up by one dollar.

Call options have positive deltas and put options have negative deltas. At-the-money options generally have deltas around 50. Deep-in-the-money options might have a delta of 80 or higher, while out-of-the-money options have deltas as small as 20 or less. As the stock price moves, delta will change as the option becomes further in- or out-of-the-money. When a stock option gets very deep-in-the-money (delta near 100), it will begin to trade like the stock, moving almost dollar for dollar with the stock price. Meanwhile, far-out-of-the-money options won't move much in absolute dollar terms. Delta is also a very important number to consider when constructing combination positions, which we discuss in more detail later.

Since delta is such an important factor, option traders are also interested in how delta may change as the stock price moves. Gamma measures the rate of change in the delta for each one-point increase in the underlying asset. It is a valuable tool in helping you forecast changes in the delta of an option or an overall position. Gamma will be larger for the at-the-money options, and gets progressively lower for both the in- and out-of-the-money options. Unlike delta, gamma is always positive for both calls and puts.
Theta is a measure of the time decay of an option, the dollar amount that an option will lose each day due to the passage of time. For at-the-money options, theta increases as an option approaches the expiration date. For in- and out-of-the-money options, theta decreases as an option approaches expiration.

Theta is one of the most important concepts for a beginning option trader to understand, because it explains the effect of time on the premium of the options that have been purchased or sold. The further out in time you go, the smaller the time decay will be for an option. If you want to own an option, it is advantageous to purchase longer-term contracts. If you want a strategy that profits from time decay, then you will want to short the shorter-term options, so that the loss in value due to time happens quickly.

The final Greek we will look at is vega. Many people confuse vega and volatility. Volatility measures fluctuations in the underlying asset. Vega measures the sensitivity of the price of an option to changes in volatility. A change in volatility will affect both calls and puts the same way. An increase in volatility will increase the prices of all the options on an asset, and a decrease in volatility causes all the options to decrease in value.

However, each individual option has its own vega and will react to volatility changes a bit differently. The impact of volatility changes is greater for at-the-money options than it is for the in- or out-of-the-money options. While vega affects calls and puts similarly, it does seem to affect calls more than puts. Perhaps because of the anticipation of market growth over time, this effect is more pronounced for longer-term options like Leaps (Long-term Equity Anticipation Securities).
Ok, you should have an understanding of the Greeks and if not at least you are aware of them and can do further research.

Buying Options vs. Selling Options
While there are certainly many viable option buying strategies available to traders, almost 90% of options expire worthless. To be more exact based on a CME study of expiring and exercised options covering a period of three years (1997, 1998, and 1999), an average of 76.5% of all options held to expiration at the Chicago Mercantile Exchange expired worthless.

DEPRECIATING ASSETS
Most investors and traders new to options markets prefer to buy calls and puts because of their limited risk and unlimited profit potential. Buying puts or calls is typically a way for investors and traders to speculate with only a fraction of their capital. But these straight option buyers miss many of the best features of stock and commodity options--such as the opportunity to turn time-value decay into potential profits. As stated earlier when they establish a position, option sellers collect time-value premiums, paid by option buyers. Rather than struggling against the ravages of time-value, the option seller can benefit from the passage of time, and time-value decay becomes money in the bank even if the underlying is stationary. For option writers (sellers), time-value decay thus becomes a friend instead of a foe. If you have ever sold covered calls against stock positions, you can appreciate the beauty of selling time value. One important dynamic of time value decay is that the rate is not constant. As expiration nears, the rate of time-value decay (theta) increases. This means that the amount of time premium disappearing from the option's price per day gets greater with each passing day.

Using this info to your benefit when implied volatility is high, selling strategies should replace buying strategies because options are expensive. You can find a list of these commodity positions free @ optionetics.com. Click on Optionetics Platinum in the tool bar, under futures login and make sure you check the box labeled “I understand” and go to ranking and data. Once you are this far there is a number of things you can do to establish a position all depending on your account. I like to bracket the market in these conditions meaning I look at the recent highs and recent lows and sell options at both ends of the spectrum (nondirectional trade).
Example...
Unleaded Gas (HU) MAR 05 futures price 131.83 (31 days left till positions expire)
Sell 1 MAR 144 Call at 2.01
Sell 1 MAR 121 Put at 1.87
The tensions in Iraq and the cold weather, should keep the market balanced, and by selling this way it lowers your margin. Whenever selling look for high implied volatility (overpriced) opposite can be said for buying.

What to use a broker for and why

First, if you are using a broker don’t be afraid to ask questions and if he does not have the answer, don’t be quick to think he isn’t the one for you. The most important thing between a broker and a client is honesty, and if he doesn’t have the answer it shouldn’t take him long to get it for you. I have found over the years that it is sometimes best if you are using a broker for one reason or another that the broker is not the one making the trade recommendations, let him find an individual trader that matches your needs. That way it is in both your interests that you the client make money and there are a lot of things they can offer you and do for you that you would not be able to do for yourself. i.e.. Call the floor to check time and sales, ability to contact individuals with years of experience either in house or at an exchange, and position you with a money manager who otherwise you would not have qualified for sometimes as much as a $750,000.00 difference.

Also if you are a private investor or business owner you can use your broker to network with other individuals that more than likely you would not meet on your own. This in itself is a very powerful asset; hell it helped the Clintons get to the White House; but it all depends on the relationship you have with your broker and your relationship can’t be one sided. When you are working together out side of trading your broker has a lot to loose. First of all he has to trust you with his other clients as your dealings will one way or another fall back on him and secondly most firms frown on brokers doing this because they get nothing out of it. If your broker is confident in his or herself and they feel comfortable with you and your business they can introduce you to potential business partners and or producers, private investors. One example... A friend of mine had a client who was a land developer and also had a client who was an Indian chief. He put the two together and they built a casino. Since then the two have worked together on many large projects equaling profitability for all parties involved.



V. Systems & Formulas

This section is dedicated to different rules and ideas I have found to work for me.

Trading Bonds... 30 year trades on major economic report, next morning example: Unemployment numbers, C.P.I., and trade deficit reports or any other news of this sort could affect the bond market.

If bonds are trading within three ticks of the day session lows, in the final five minutes of trading sell bonds M.O.C. (Market on close). Cover your short position in the evening at least five ticks lower or M.O.C. I do not like to carry my positions overnight. Stops should be five ticks above your day session fills.

If bonds close near their low of the day ahead of economic news, it means traders are concerned about the report. This concern spills over into the evening session, causing further weakness. This method will give you a few trades per month with a high percentage of profitability making it worth while.

I also like to trade off historical volatility which I talked about earlier, in which I try to buy historically (low) cheap options and sell historically (high) volatility options. You can also use historical volatility readings to signal major moves in a market. Formula: Whenever a ten day historical volatility reading reaches half or less of its hundred day historical volatility reading, a major move is near. Data that is needed can be obtained from exchanges or from various websites. Trading of theta or decay can be very profitable especially when used in nondirectional trading. Just keep in mind it often requires aggressive positioning but don’t be greedy, look for volume in both positions and try to match up premium of the positions sold if you don’t plan on adding other legs to the trade. This will keep your margin lower.

Example: Unleaded Gas (HU) MAR 05 futures price 131.83 (31 days left till positions expire)

Sell 1 MAR 144 HU call @ 2 points
Sell 1 MAR 122 HU put @ 2 points
= 4 points in premium... Doesn’t have to be exact.

If market runs up, the price of the call will increase and if it’s a sharp increase (one day move) premium will reflect that a lot but I wouldn’t offset the call position that day. On the other hand, on a day like that, the price of the put would decrease considerably allowing you to buy back the position at a discount. In that case, by all means do not go by the last trade you see, put in a bid considerably lower than what the market is offering. I like to use fill or kill orders in situations like this, that way you can work the market. You will normally find in cases like this settlement prices will not reflect trading highs of the day. If you did this you would have an open position (the call that you wrote) which I would offset the next day during profit taking (meaning the market was sideways or moving down) by selling a 130 MAR put for 2 points. I would also find out what was driving the market and if I felt it was going to come back down I would normally sell another call, let’s say MAR 152 call for 2 points. I would work the order the same way as described earlier. If your orders got filled, you would find out in a timely manner and you would have the following positions open.

1 MAR 144 HU call 1 MAR 152 HU call 1 MAR 130 HU put

When calculating how you stand in the trade, remember that you bought back the 122 put at a profit. In such a market it is not unlikely to see events like this, you just have to know how to react. In a few days, if the market settles down, offset the152 call which you sold at a high premium because of that days activities SHORT TERM – MARKET BUYS ON RUMOR SELLS ON FACT. As an option seller you can take advantage of this as long as you know what you are doing or you have discussed it with your broker. Markets don’t move straight up or straight down so don’t get caught up in the emotions of the market place, just do the math and use common sense.

VI. REASONS TO GET OUT AND WHAT TO DO

You are starting to get pressed on a position...

1. In the overnight market, if the market breaks out and holds overnight- Put in a fill or kill order on the open at last close price. (Day order)

2. Market breaks and holds- Offset by selling opposite position with equivalent premium, hold five market days if no retracement then liquidate losing side of trade.

3. Sold Call - Market breaks and holds but there is another resistance point at a higher level- Sell another position at that or above that level. (Can also be used with step two).

Remember you never want to make a bad situation worse so never allocate more than 30% of an account towards one trade. Margin is cash and it is your money, always think of it that way.

4. Go long/short the futures using a close stop loss order and when time value on losing position is worthless, offset both positions. My opinion.

5. Sold Call - Buy call option (cheap), if no resistance can be found, and offset position. Doesn’t occur that often, but when it does, it can turn a bad situation into an extremely profitable one as long as you know how to recognize it. Use a six month or one year chart to help you at first then look at three to five year charts to find additional resistance points.

Examples...

Natural Gas 2000 market made a 3.00 to 10.00 run

Unleaded Gas 2001 market made a .76 to 1.18 run

Try not to close out in the money positions at less than their intrinsic value.

If you have ever had a position in the money or deep in the money then you have noticed that the market does not want to give you what that position is worth, especially when close to expiration. Many investors see this as normal and close out their positions below intrinsic value. Instead let’s say you are closing out a long call and on Dec expiration day the xxx corp is trading at $100.80 and you own 10 of Dec 90 calls that you would like to close. The Dec calls should be trading close to parity price of $10.80 but you see that the bid is quoted at $10.00 and if you closed out your positions at market price the proceeds would be...

$10.00 x 10 x 100 = $10,000

Naturally, you can try to place a limit order to sell at $10.80(or more reasonably, $10.75 - a nickel for the market makers to do the trade). But let's say you tried that and cannot get the order executed at that price. How else can you close an in-the-money option that is trading below parity? The same way the arbitrageurs would. Instead of selling your call at the bid, place an order to sell the stock (ask). Once the sell order has been executed, immediately exercise the call option.

In the above example the stock is currently trading at $100.80. So place an order to sell 1,000 shares at $100.80. Once the sell order is executed, you simply submit exercise instructions to your broker. The terms of the option contract means you will buy 1,000 shares at the strike price of $90. So you receive $100.80 a share on the stock sale and then buy it for $90 on the exercise. The proceeds would be:

(1000 x $100.80) - (1000 x $90.00) = $100,800 - $90,000 = $10,800

That’s an extra $800 you picked up.

If your firm requires the shares to be in your account for you to sell them, just let your broker know that you will be immediately submitting exercise instructions to purchase the shares. There is no reason they shouldn't allow it since the Options Clearing Corporation guarantees delivery of the shares at settlement. You can also do something similar to this in the futures market depending on your portfolio or what you produce.


VII. FOOD FOR THOUGHT... SEASONAL MARKETS
Many markets can be considered seasonal. All seasonal means in the trading world is any event that leads to a price change over a period of time on a consistent basis either man made or by nature. Here is a list of some seasonal markets cattle, grains, metals, petroleum, softs, and indexes.
Here are some examples...
S&P 500 - Sell December S&P 500 contract on September 1st and buy it back on September 30th. In 20 years this trade has had a 75% success rate, 100% success in the past 5 years. Explanation: September tends to be a weak time for stocks while more bullish tendency occurs around Christmas.

Cattle - You can normally find a price spike when schools buy beef year to year and prices are normally high between January and March where supply is limited and prices usually fall from early march through mid June. During the summer months beef prices tend to increase due to high demand from the fast food industry, and Live Cattle prices tend to increase through to year’s end, with minor breaks occurring due to spring born Cattle moving to stocker operations.

Grains - Grains are killed 3 times a year. First when it’s too hot/cold/wet/dry for planting or for the crop to emerge. Then during the summer on fear of too little rainfall for pollination. This can be an explosive rally though option buyers beware volatility is normally high in a case like this. After reading this you should have an idea what to do (sell options). Then again in autumn during early frost or harvest delays.

Metals - Look for them when automotive, electronic and major jewelry companies are purchasing goods. Also investors will look to invest in these markets when other markets are not doing well such as interest rates. Remember old school thinking metals are a safe haven.

Petroleum - Has 2 major times of year when a price spike can be seen seasonally during the summer drive time and during the winter heating period. Crude oil in its raw form is more influenced by geopolitical events but will also be brought up or down by gasoline and heating oil.

Softs - The threat of a freeze may produce price spikes in coffee in July and in orange juice in January. You can also see rallies in cocoa in November and December due to harvest delays and threat of disease.

Understanding these trends and being aware that they exist can go along way to helping you have a profitable trade in both stock and commodity trading.


VIII. HEDGE FUNDS & MANAGED FUTURES


Managed Futures - With practically a zero correlation with stocks, one of the most attractive features of managed futures is its ability to add profound diversification to an overall investment portfolio.

Dr. Harry Markowitz, the father of Modern Portfolio Theory, who won a Nobel Prize for his work, concluded that holding securities that tend to move in concert with one another does not lower risk. Diversification reduces risk only when assets are combined whose prices move inversely, or at times in relation to one another. A diversified portfolio of non-correlated assets can provide the highest returns with the least amount of volatility. One of the most non-correlated and independent investments versus stocks is professionally managed futures.

A landmark study by Harvard Professor Dr. John Lintner concluded that "the combined portfolios of stocks (or stocks and bonds) after including judicious investments...in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone." Lintner specifically showed how managed futures can decrease portfolio risk, while simultaneously enhancing overall portfolio performance.


Jack Meyer, the head of Harvard University's Endowment portfolio, concerning futures, stated, "Holding commodities offers protection against the ups and downs of stocks and bonds." Referring to commodities, he added, "They're the most diversifying asset in the portfolio. The benefits of diversification are indisputable. Diversification rules. It's powerful and our portfolio is a good deal less risky than the S&P 500." 32 % of the Harvard endowment fund is allocated in managed futures. Funds range from a minimum investment of $15,000.00 to $1,000,000.00 minimum just depends who you go with and some have averaged returns over 80% over a three year study.

Managed futures also have tax benefits over stocks. According to the Tax Act of 1981, short-term profits in commodities are treated as 60% long term and 40% short term. On the other hand, short-term trading profits in stocks are treated as 100% short term. A short-term investment is one that is held for less than one year. This favorable tax treatment in commodities can translate to investors in upper tax brackets, saving as much as 30% on taxes in short-term gains on commodities versus stocks!

Need more convincing compare U.S. Bonds and the S&P 500 vs. the Barclay CTA index, in a 15 year study the Barclay CTA index beat them both out. (A CTA is the person who trades the fund and must be licensed and registered to do so.)

Hedge Funds - Refers to private investment vehicles that seek above-average returns through active portfolio management. Hedge funds tend to be skill-based investment strategies that attempt to obtain returns based on the unique skill or strategy of the trader.

Investors are attracted to hedge funds for a variety of reasons. This includes their potential to deliver positive returns under all market conditions, low correlation to traditional asset classes, and access to highly specialized strategies not typically available through traditional money management.

Hedge funds are largely unregulated by U.S. security laws and are strictly prohibited from advertising. As a result, hedge funds today are offered as private investment partnerships, generally with fewer than 100 affluent investors or institutional clients. A primary benefit of hedge funds is the low correlation many strategies have to traditional investments.

An estimated 6000 hedge funds exist and manage in excess of $550 billion so finding the right one can be difficult. Hedge fund managers are not required, and in many cases not allowed, to advertise or report performance data to any central authority. As a result, many of the top hedge fund managers are not listed in commercially available databases.

This is where your broker is necessary or you can hire a hedge fund consultant.

From January 1990 to June 1994 the HFR (hedge fund index) beat out the S&P 500, NASDAQ, and the MSCI (world index of intl. stocks) in annualized returns.


IX. DEPENDABILITY

There are very few people I would trust with my money or my business, but one person has never steered me wrong and here is where I let you in on my most valued asset. I was once a trader (since publicly retired) so I know how important it is to have someone look after you. And I had the opportunity to meet and work with an individual that I could trust. He is a Mason, a Jester in the Shriners, is licensed to trade both stocks and futures, was qualified to handle classified material in the military, and worked on Wall Street for years, from which he retired. Came back to the markets to get away from his wife, and is working at a firm in which the owner has been in the business for 35 years because he didn’t want to go home to his wife. All kidding aside, they have been great to work with. Both just love what they do and are one of a handful of people left today that I would still do business with on a handshake.

OUTSIDE OPPORTUNITIES

This is just one of the things we are working on.

Like all good investors I believe in diversification, and the ability to make money outside of traditional markets and that means being open minded and noticing a good thing when it comes along. Here’s a little taste of what we are working on. We are representing a company which uses the most advanced waste technology available it’s a company that specializes in thermal degradation which is a form of advanced pyrolysis (material super heated without oxygen).
The process is very clean and no pollutants are emitted to the environment. It produces 1 kWh out of every kg of waste.
The electricity will be sold to the Public Electricity Corporations. We will also recover scrap steel and the aluminum content of the wastes. The solid residue from the waste processing (about 10% of the volume) is totally inert and will be converted to building materials to be sold to the open market.
This is a 22nd century solution to a 17th century problem. This is the way of the future before the future we are going to get rid of landfills and power plants that are harmful to the environment. Oh and did I mention that the company we are working with OWNS the patent to this technology. And that the company already has facilities in the U.S. and in Europe.
This is going to be very profitable for all parties involved including the environment for a change. If you would like more information or to see if you qualify contact...

John Tovatt

email: kurtosis_4@yahoo.com