My best tool for maximizing profits is cyclical analysis. This give you a time parameter to add to your trade, vs just using a price objective. So if a cycle says that a stock (and the market) has a high probability of rallying for a specific time, you can stay with positions and even add to them with more confidence when the trade is going right. Great Trading! Slim
I have heard of it and read testimonials. I have not seen it in action. At some point, I hope to test the product. Slim
OH! I See. Yes, a bullet is essentially a synthetic call (Long stock and Long put). So why would you want to do this vs. buying a call? You, of course will pay double commisions. The best answer is for creation of long stock in your trading portfolio so if the market begins to drop, you won't have to worry about getting upticks for short sales. There are companies who are in business for just this purpose, creating bullets for traders. Another reason is for dividend capture. Even then, it's questionable whether it makes economic sense unless you create a long holding period that encompasses at least two exdividend dates on a high-yielding stock. Slim
Cyclical Analysis... Can you be more specific? What kind of tests do you go through? Just an elementary / empirical time period? Optimized using some backtesting software? Some statistical edge? Fourier? Gann - Elliott like relative time algorithm?
"The question is not why you are so infrequently the person you want to be. The question is why do you so infrequently want to be the person you really are?" The Dance -- Oriah Mountain Dreamer You make 50%??? It sure sounds tome like you have the method. The holy grail lives within you. Find the resources and alliences that will help you be the best you can be as a trader, to help you build your emotional fitness so that you will blossom with the talents and knowledge that is within you. Humbled, Slim
That is because they are designed as a hedging vehicle for portfolios. The downtick rule would inhibit this use. Slim