bullets for LU

Discussion in 'Order Execution' started by markcuban, Jul 15, 2005.

  1. is there still such a thing as a bullet you can purchase in order to be able to short stock without a uptick? Specifically LU. Thanks

  2. you are joking right?
  3. maybe he meant to ask this 5 years ago.
  4. mnx


    maybe's he's talking about conversion or SLPS... both of which I don't have access to so don't know a whole lot about... anyone care to shed some more light on this topic?

  5. Bullets, or Married Puts, or Puts and Stock, they are all the same thing. You buy deep puts and stock one-to-one as a package from someone. You are now, for the time being, physically long the stock, which allows you to sell the stock long, which you can do on a down tick.

    However, the person who sold you the bullets does so with the knowledge that you will exercise the puts the same day. That way the initial stock/put package goes away, leaving you with a short stock position.

    Why in god's name would you need to do this with LU? There are plenty on upticks in LU to give you the ability to sell short; not to mention why you would want to short a $3 stock anyway. I see this and think it's time to load the boat with LU stock.
  6. Steve Tvardek and Monistat 7:

    The purpose of Elite Trader is for traders to share ideas and ask questions. The benefit of traders sharing ideas and asking questions is to improve one's trading and subsequently, make more money.

    When one is ridiculed for sharing an idea, or asking a question, one is less likely to continue using this site and the purpose for which this site it is intended is compromised.

    In the future, perhaps a question you could ask yourself before responding to a thread or probably even opening your mouth in gerneral might be : " is what i am about to say relevant to the topic at hand?". Or maybe learn to embrace saying nothing at all - in most instances, i would imagine, it is going to help your image considerably. At any rate - mocking someone who has a legitimate question is not appreciated. I apologize for not having the worldy skill and knowledge of you two "elite traders". I digress....

    E trade pro: Thank you for the feedback. and to answer your question - in the past two days, lucent has sold off .16 cents and getting short shares was difficult, if not impossible b/c of the downtick. Several years ago - bullets were available for big cap stocks and so I would like to know if they are still available.

  7. Bullets have been gone for over 1 1/2 yrs. now.
  8. unless they've changed the basic rules on shorting, such as making more short-exempt from the uptick rule,

    the other requirements were (just off memory):

    1) stock has to be above $5
    2) check rule #1, in order to prevent running a stock into the ground
    3) etc...
  9. Some firms have conversions which allow you to short on a downtick. I used to use them myself thru Assent about 6 months ago.
  10. I'm sorry if I offended you but I really thought this you were kidding with your question. I have answered questions before concerning similar things, only to find out that the person was messing around. Anyways, I hope you find the answer you're looking for.

    #10     Jul 18, 2005