Tampa Bay Times from St. Petersburg, Florida • 22

FINANCE 6B ST. PETERSBURG TIMES TUESDAY, OCTOBER 11, 1977 Options market is proving to be lucrative for brokers Bv LEONARD SLOANE rights. regarded within the industry as a breath of fresh, and prof- forces to market the options cor By LEONARD SLOANE rights, regarded within the industry as a breath of fresh, and prof forces to market the options concept only to those custom ers who are financially and psychologically capable of employing this tool. There has been a slackening of public participation in options, even though total volume which includes trading by professionals on the floors of the exchanges and by the brokerage firms themselves is higher. Although final figures are not available yet, it appears that for the first three quarters of 1977, public orders on the CBOE declined 10 per cent to 7.1-million 100-share contracts, and public orders on the Amex fell 6 per cent to 3.5-million contracts.

One options expert, who asked not to be identified, gave as a reason for the shrinkage in public participation: "In the first couple of years, people engaged in options transactions that they didn't think through. They were sold on buying something that they should not have bought and they've vowed not to let that happen again." itable, air. Last year, options commission revenues amounted to or 10 per cent of all securities commission revenues, compared with $257-million, or 7.6 per cent, in 1975. The enormous growth of options over the last few years as a vehicle for investment and speculation has troubled some observers both in and out of the securities industry who see it luring small investors into a field that lacks fundamental stability. The lure for an option buyer is the small amount of money needed to make possible the purchase of a large amount of stock, with the risk essentially being the odds against ever being able to exercise the option at a profit.

For the seller, the risk is the possible loss of the underlying stock, at a time when it is appreciating in value. Securities executives involved with options say they attempt to counter the criticism by instructing their sales Listed options started trading in 1973 on the Chicago Board Options Exchange (CBOE), on the American Stock Exchange and the Philadelphia Stock Exchange in 1975 and on the Pacific Stock Exchange and the Midwest Stock Exchange in 1976. From humble beginnings, options have become a significant portion of brokers' gross income and an even more significant percentage of overall securities revenues; for the options market proliferated as the equity side of the business came upon hard times. For example, in the first nine months of this year, the volume of shares traded on the New York Stock Exchange fell 4 per cent, the Dow Jones industrial index dropped 16 per cent and institutional brokerage commissions have been squeezed to as low as 4 cents a share. Brokers' profits have been hit hard.

As a result, the recent surge of interest in options is (CNsw York Ttrnss NEW YORK Options are the hottest game in town for investors and speculators and also one of the most lucrative parts of the business these days for brokerage firms. "We're dealing with a product that went from zero to our second largest source of revenue in four years," said B. Macon Brewer, first vice president and options product manager of Dean Witter Co. "We are continuing to open option accounts at a very brisk level," added Kenneth F. Dolan, manager of the options department at Smith Barney, Harris Upham Co.

"I look at my department and I can't get anyone to look up and have lunch." Options are rights to buy or sell securities at a predetermined price within a specified period of time. A call option gives the holder the right to buy 100 shares of an underlying common stock, while a put option gives him similar selling Real estate trusts show signs of life Gold price leaps dollar continues slide By CLAYTON REED St. Petersburg Times Business Editor Associated Press If you've been holding onto real estate investmept trust (REIT) stock in the dogged belief that REITs will rise again, there's a glimmer of hope. But it isn't a big glimmer. REITs, it will be recalled, are those Prince Charmings of Wall Street that turned into frogs when recession punctured the speculative real estate market.

For most, their exceptionally high dividends and share prices plunged, or disappeared, along with income. But now the share prices may have bottomed out. The National Association of Real Estate Investment Trusts reports that its index of 165 REIT stocks posted its third monthly rise in July, bucking the general stock slide. True, the index stood at only 16.27 compared with 100 or more in 1972-73. But it was the highest since 1974.

The association also reported that 73 REITs were paying dividends in the July-September quarter. That's up from a low of 68 in early 1976, even though far short of the 154 dividend-payers in mid-1973. Nevertheless, the association said, industry trends "continue to be dominated by those trusts that are liquidating creditor demands." It said assets fell 4 per cent in the 1977 first quarter, and there'll be further decline through early 1978 as certain trusts "continue to swap loans and properties to repay bank debt." Some REITs plug away at restructuring finances. The big Miami Beach-based First Mortgage Investors, for instance, has offered holders of its 81. per cent senior debentures, which had been due for payment July 1, $570 cash for each $1,000 amount outstanding.

Alternatively it offered $250 cash and $750 in new debentures. Market trading is slowest in 21 months By FRANK W. SLUSSER United Press Internationel NEW YORK Stocks, hampered by investor fears of rising interest rates, retreated Monday in the slowest trading in 21 months as many traders stayed horn! for the Columbus Day holiday. The Dow Jones industrial average, which had been down nearly three points at one time, shed 0.09 point to 840.26. The New York Stock Exchange (NYSE) common stock index fell 0.09 to 52.50, and the average price of a share dropped six cents.

Standard Poor's 500-stock index, containing some over-the-counter issues, dropped 0.22 to LONDON The sagging U.S. dollar continued its slide against all European currencies except the West German mark in foreign exchange trading Monday, while the price of gold jumped nearly $3 an ounce on the two major bullion markets. In Zurich and London, gold closed at $157,125 an ounce, a sharp increase from Friday's closing price of $154,125 an ounce in London and $154,375 an ounce on the Swiss gold market. The dollar's decline began two weeks ago and one analyst in London predicted that it would not begin to gain strength again until the market regains confidence in the American leadership. AN APPARENT bid by the West German Bundesbank and the Swiss National Bank to shore up the dollar through purchases on foreign-exchange markets failed Monday, and the American currency barely managed to hold its own in Frankfurt while declining still further in Zurich.

The dollar closed at 2.2923 West German marks Monday, compared with Friday's closing of 2.2900. Against the Swiss franc, the dollar closed at 2.3041 Monday, dropping from 2.3120 Swiss francs Friday, the previous record low. Dealers in London and Frankfurt said the Monday rate may have been "a bit false" due to thin trading because of a partial holiday in the United States and Japan. In London, the pound continued to gain strength to finish Monday at $1.76, up fractionally from Friday's close of $1.7588. The Bank of England reportedly intervened in only small amounts in a steadying action.

IN PARIS trading was described as uneventful with transactions at a minimum. But the dollar eased to 4.8715 French francs from Friday's close of 4.8720 francs. The American currency's slump also extended to Milan and Amsterdam markets. The dollar closed at 881.20 lira compared with Friday's 881.30 lira in Italy, while in Amsterdam the close was 2.4385 Dutch guilders.down from 2.4410. The skyrocketing jump in gold prices appears to stem from a combined effect of increasing demand and slack supplies from South Africa and the Soviet Union.

Those two countries are the largest producers, and they sell most of their gold through the Zurich market. Pinellas, Pasco, Citrus permits jump By JOHN HALL St. Petersburg Timss Business Writs Channels 3 and 1 6's new 'receive-only earth terminal' will look like this one in Dallas. Channels 3 and 1 6 to receive signals by satellite By JOHN HALL St Petersburg Timel Businon Writer fered through the satellite, Ted Sullivan of WEDU said, would give the stations the capacity to avoid some of the present duplication. As a practical matter, Sullivan said, some popular programs will continue to be shown on both channels.

WUSF is at the "earth terminal" site, but getting satellite signals to WEDU will take a bit more: A small dish will relay them to the top of downtown Tampa's First Financial Tower, where a reflector will bounce them over to WEDU studios. a $250,000 "receive-only earth terminal" at the University of South Florida in Tampa to catch signals in a dish antenna from Western Union's speeding Westar satellite. Both WEDU-TV (Channel 3), operated by Florida West Coast Public Broadcasting, and WUSF-TV (Channel 16), operated by the Florida Board of Regents, will be able to choose among four programs for broadcast or taping for later broadcast. The profusion of programs of Viewers will see a richer variety of programming after the Tampa-St. Petersburg metropolitan area's two public television stations begin to receive full service from an orbiting communciations satellite March 1.

The satellite will end program transmission through earth-bound circuits of the telephone company, Channels 3 and 16 said Monday. Construction begins this week on DOW JONES AVERAGE 30 Industrials Clssed at 840.26 Sun Banks, First Marine profits rise for what it's worth D0WN 0.09 95.75. The big story of the day was the lack of volume. The NYSE volume of 10,580,000 shares, down sharply from the 16,250,000 traded Friday, was the slowest since 10,300,820 changed hands on Jan. 2, 1976.

The previous slowest session of 1977 was on May 9, when shares were traded. Federal government offices and many of the nation's banks were closed, but the stock and bond markets were open. Declines topped advances, 736 to 563, among the 1,829 issues crossing the tape. Composite volume of NYSE issues listed on all E. Volume Profile VHCHftUtD 736 563 530 based American Agronomics reported profit of $132,000 or 10 cenU a share in the third quarter ended Aug.

31, compared to a net loss of $691,000 or 31 cents last year. Internal Revenue Service (IRS) is demanding in additional 1971-72 personal income taxes from the founders of the Holiday Inn chain. Chairman Kemmons Wilson and retired Vice Chairman Wallace Johnson of Holiday Inns are fighting in the U.S. Tax Court the disallowance by IRS of some $12-million of deductions for money they pumped into a construction company. The purpose was to bring profits up to the level stated in a stock prospectus.

BUYOUT IN ATLANTA? A New York investment banking firm, Oppenheimer is negotiating to buy Alterman Foods, Atlanta-based operator of 89 Big Apple and Food Giant supermarkets. Oppenheimer, a principal in purchase of Havatampa Corp. assets, was offering $21 a share for stock that closed Friday at $18,375 Treasury bills auctioned Friday in a government refinancing went for the highest rates in two years. Average for the three-month bill was 6.156 per cent, up from 6.108 the preceding Monday; the six-month bills' average rose to 6.381, up from 6.286. JOHN HALL Compiled from Times staff end wire reports The first two profit reports came out Monday for July-September on Florida bank holding companies.

If they are representative, things are really looking better for Florida banks. A key factor: rising loan volumes. Orlando-based Sun Banks of Florida turned in the big report late Monday afternoon: July-September net profits leaped to (26 cents a share) or 137 per cent ahead of (10 cents) in last year's third quarter. Sun Bank loans rose to $900-million by Sept. 30 or 14.2 per cent cent ahead of the same point last year, and deposits rose by only 11.1 per cent.

The extra push in loans means more profits because the rates are higher than on the money-market instruments in which deposit-heavy Florida banks must sink so much money. But just recently, short-term money rates, such as Treasury bills and federal funds, have been rising nicely for the banks. With rising rates added to better loan volume, the promise is for even higher profits in 19778 final quarter. For the nine months, profits of the Sun Banks grew 46 per cent to (69 cents) from (45 cents) a year earlier. Sun Banks sprawl across Florida with 68 offices and of assets.

Monday's other report came from a ISSUES mOtD H29 INDEX S2 SO ill I 09 Hammers should be resounding and power saws whining all along the Suncoast, to judge by the latest building-permit reports of Pinellas, Pasco and Citrus counties. Pinellas: of construction permitted in August (a late report caused by late returns from some small municipalities) or 70 per cent more than August 1976. January-August total up 58 per cent to $217-million. Pasco: of permits in September, up 30 per cent from September 1976. January -September, up 59 per cent from last year.

Citrus: September building permits up strongly, sending January-September total to from in first nine months of 1976. Single-family homes continue to lead this happy construction parade. In Citrus, for example, single-family permits rose to 99 in September from 44 a year earlier, while the value of these permits leaped to from For the year through September, Citrus' single-family permits have soared to 463 on valuation in 1977 from 433 and Pasco's September total included 327 single-family permits valued at 127 mobile homes valued at $482,384 and illustrating how slow multifamily construction is on the North Suncoast one six-unit apartment at $88,998. In Pinellas, up-county areas carried the day with August increases of 196 per cent to for Clearwater and 96 per cent to $14-million for rural Pinellas. St.

Petersburg showed but a 9.4 per cent August gain to and for September was down sharply from September 1976. In other August permits, Largo issued Safety Harbor, Pinellas Park, Tarpon Springs, $682,561, and Dunedin, $681,333. mm 7.iU 000 SHARES i cumposiie os is on t. U.S. exchanges and over the counter totaled 12,234,800 smaller company, First Marine Banks of Riviera Beach.

While First Marine's July-September profit jump was a less eye-catching 27 per cent from last year, 19 cents a share compared to 15, its significance is different from Sun's. Since i- 'irine is a more conservative ji 'hat never dropped as far as Sun and some others in Florida's recession, its smaller percentages look quite good. Pinellas wins research firm Pinellas County has landed a small research facility, the Pinellas County Industry Council and Committee of 100 announced jointly. Moving from Minneapolis to a home near the St. Petersburg-Clearwater International Airport is Population Research a subsidiary of the $130-million-8ales Medtronic Inc.

of Minneapolis. Population Research will have about 10 employees and engage in medical research in a office Arcadia- shares, compared with 18,894,640 traded Friday. The American Stock Exchange index fell 0.30 to 118.55, and the average price of a share dipped three cents. Declines led advances, 292 to 245, among the 824 issues traded. Composite volume totaled 1,782,200 shares, compared with 2,123,655 Friday.

Standard Container fell to 67 after the company revealed that it has discontinued negotiations to sell its assets to Oppenheimer Co. The National Association of Securities Dealers' NASDAQ composite index of over-the-counter stocks rose 0.07 to 101.69. Advances topped declines, 345 to 291, among the 2,540 issues traded. Volume totaled 5,774,400 shares, compared with 8,058.700 Friday. The lake must be moved MINOLTA COPY MACHINE SALE WE HAVE JUST LOWERED THE COST OF HIGH QUALITY COPIES Robert Wilmouth new head of Chicago Board of Trade Compiled from Tim rtaff and wir rm porf By CLAYTON REED St.

Petersburg Times Business Editor Robert K. Wilmouth has been named president of the Chicago Board of Trade, it was announced who's news 1695 I 1 Copy quality -performance equal to SAVIN SAXON CANNON PLAIN PAPER COPIERS Never underestimate a developer's determination. One has asked the city of St. Petersburg to permit the movement of a two-acre lake to make room for more development in the Tyrone area. In a preliminary plan filed with the city zoning de--partment, Amterre Development Inc.

of Philadelphia proposes subdivision of land it owns on 22nd Avenue west of 66th Street It wants to create 12 lots for commercial buildings and an apartment project. The only trouble is, there's this two-acre lake that fronts on busy 22nd Avenue obviously a choice location. Amterre's thought is, well, not to pick the lake up and move it, but to dig another one farther back from 22nd Avenue and fill in the present lake to provide commercial sites. Amterre says the full tract could accommodate stores, offices and perhaps a residential high-rise. City planner Wayne Smith said the plan goes to the Environmental Development Commission Oct 19.

Some opposition is expected from neighbors who, concerned about traffic, fought an earlier Amterre proposal to build a shopping mall on the site. Mfg. List $2450 Save $755 Rental Payment $44.07 Per. Month With Purchase Option Monday. Wilmouth, president and chief administrative officer and a director of Crocker National Corp.

and of its subsidiary Crocker National Bank, succeeds Warren W. Lebeck, who will remain with the exchange as senior executive vice president. Lebeck announced in April that he would retire early. Mrs. Barbara L.

Wall of St. Petersburg has been approved by the National Nominating Committee of the American Business Women's Association as a candidate for vice president in the group's District 1, which takes in a six-state area and Puerto Rico. She is administrative sales director for Isla del Sol St Petersburg. Dr. William E.

Kilgore has been named to the Advisory Board of the Clearwater office of Landmark Union Trust bank. Kilgore is chief of surgery at Morton Plant Hospital, Clearwater. electrographic 101 Call Today for our Mobil Showroom PINEUAS 576-5321 HILLSBOROUGH 227-8151 Factory Authoriiod Sorvk COPY MACHINE SHOWCASE.