Discussion in 'Trading' started by tula, Sep 1, 2003.

  1. tula


    I would like to get an explanation on Bullets. I understand these are married puts where you are fake long so you can get short without an uptick.

    What i really don't understand how can the bullets be filled so quick? Does a bullet get created by an execution or is it something created in house by the BD or by an external provider.

    Basically my confusion is how can the bullets be created so quick if it created by a couple of transactions?

    thank for the input.
  2. tula please do a search of ET for many excellent discussions about Bullets.

  3. tula



    I did a search and found alot on bullets what i didn't find is about my question on how they are created. what i am asking is if it is an execution of different parts or just some securities in the books of BD that are put on the bullet buyers account.

  4. Sorry tula, my bad. I did not thoroughly read your post. I sure don't know the answer to that, but I can point you to some guys that do. There are way more than I mention, but I know these guys know. Don Bright, metooxx, nitro. PM them, or any one of the members who gave what you feel are meaningful responses to discussions you read about bullets. I'm sorry I cannot be more help.
  5. I think the bullet firms have an inventory of stock, but can't say for sure on that. I do know that when I've gotten bullets on very thin, obscure stocks, I've seen a trade for the number of shares I'm buying print on the tape as soon as I hit the bullet buy key, obviously executed by the bullet company .
  6. stevebec


    Don Bright did a good explanation in one of the chats a couple of months ago. Check the logs.