Like any tool, they must be used with discretion. For some, access to a brokerage account at all is too much for them to handle. Tell you what, give me unlimited ability to hit any bid, I'll make lots o' monee. Any yes, I know you can do that with QQQ and other ETF's , but they dont trade like stocks.
<i>Tell you what, give me unlimited ability to hit any bid, I'll make lots o' monee.</i> Are you using bullets now? Are you making lotsa monee now? Feel free to divulge your secrets, and I will fill you in on the proprietary details of my Amazing Short the Bottom with Bullets Technique. Why are the <i>html</i> tags not <b>working?</b>
andover offers the best execution for bullets. the hammer software lets you buy 500 or 1000 bullets with one click. there is no need to click on a different program to purchase bullets, then clicking back to your stock execution software. i just punch up the stock hit f8 to buy bullets and f9 to smack the bid. nothing compares to andover as far speed.
On one of the postings some guy described a bullet option as buying the stock, selling the call,buying the put and then selling the stock to leave only the options position. From what I understand this is done to avoid the uptick rule. As you fellows in the US of A are aware, us folk in England are exceedingly clever and all knowing but this has got us stumped! Can somebody please explain why you have to get involved with the stock when you could simply buy a put and sell a call?
This is an inaccurate explanation. The stock purchased in the conversion (bullet) is not sold. It is kept for the duration of the life of the "bullet". Stock is then "shorted without an uptick" against this position. So technically, it is sold "long". The options have nothing to do with the position other than to make the long positioin "riskless".
Thx for the reply........I still do'nt follow. Lets say I wanted to short IBM at $70 and it was trading at $70 .Could you explain how this would be done via a bullet.
Have you ever tried to buy puts and sell calls when the market is dropping? By doing a bullet, and then selling out the stock, you have created a synthetic short position via the options. At the point you think the stock has stopped dropping, you buy back the stock and are now back in a hedged position. A bullet allows a trader to as efficiently as possible buy a put without having to suck up to the floor traders.