And just in case you didn't know, you can enter a short sell limit order at a price below the bid chasing the stock down and stopping at your limit price and the specialist will not fill you on a downtick.
Most of the time they are not needed, and you really don't want to pay for conversions on so many stocks. If the market is going to open way down, you may want to use bullets for that day. Don
Don,one question...if an NYSE stock closes at say $50.00.What price would the stock have to open at if i want to short using an OPG order,not using a bullet or conversion?
Vinny, May I try to answer this post for Don, First I suggest you read the 'Don's opening startegie' threats. Then you'll know it all depends on the close of the GLOBEX futures in relation to the Close of the last day. This is called a Fair Value. If the globex futures are way up against last days close, we might suspect stocks to open higher as well (Watch out for morning news !!) You calculate the estimated opening price of the stock and after that you put a percentage channel around this price. If the stock opens BELOW this channel you want to go LONG (since the stock is lower than it should be / specialist is long) and if the stock opens ABOVE this channel you want to go SHORT. This is done by entering 2 OPG (opening orders) 1 buy below the channel and 1 sell above the channel. If you get filled on 1 , the other atomaticly cancels itself and if you don't get a fill (The stocks opens in a fair range of the futures) both get cancelled. Hope this helped.
I'll be having a discussion with the people at OneChicago today or tomorrow to get a full update on the status of the SSF's and all the details involved. I'll post something up for everyone at that time. Since the pricing of the SSF's will reflect this benefit, and the fact that many who get full interest on short stock, they may not be the way to go at first. I think that eventually we may eliminate the need for the uptick rule, but not for a while. Don
The simple answer to this one is: the stock would have to open up 1 penny higher than the previous day's close, or at the same price if the previous close was an uptick already. Don