I can attest to Mr. Schey's trading skills and profitability over the years (don't know exactly what he did when he was trading "on the dark side" - other firm(s), but does well with us). Don
Mav, I scanned what you said above, and things do change. We have added options to the mix, with some basic guidelines. We've always allowed traders to buy up to 25% of their equity of options. We also allow, after properly screened, "one to one" vs. options or vs. stock spreads. I noticed that you are raising outside capital for your traders to use, I might be interested, what do you pay these outside investors? How do you pass the costs through to the trader? Sounds interesting. BTW, are you moving to Texas? Don
Don, that's good to hear you guys are doing options now. But it's still not the core of what you do. Just as we have guys that do pairs trading, it's not the core of what we do. Different strokes for different folks. I have a very standard agreement for raising capital where traders give up a small cut of their profits on what I raise them for a period of time then they own the assets completely. It doesn't cost the investor anything. My cut comes out of the trader. No, my mother moved to Texas. I'm still in Chi-town.
I see no problem with you taking a cut of profits for your efforts. What interest rate does the investor receive? Just curious, Don
Yes. My comedy reference was in the context of Don implying that Bright loans money out at 2% when in fact you are doing nothing but getting into a pair at 2% debit. All this credit interest/debit interest lingo is nothing but a scheme to lure people in. Not even sure why mav brought up the conversion/reversal example. How in the world are you going to exploit it when you have a pair on?