Hello guys, I have seen you talking about bullets but I must admit I don't know what this is so can someone tells me why it seems exciting and what it is ? Also how can we pass Serie 7 exam if we are european daytraders trading nasdaq ? Thanks
The firm you go with will need to sponsor you. Foreign Exam Locations for the Series 7: http://www.nasdr.com/2634.htm Phone Numbers for Scheduling Appointments at Foreign Locations: http://www.nasdr.com/2634_scheduling.htm Foreign Test Centers Policies/Procedures http://www.nasdr.com/2634_procedures.htm Bullets Discussion: http://www.elitetrader.com/vb/showthread.php?threadid=1229
Here is the link to a thread that outlines the technique: http://www.elitetrader.com/vb/showthread.php?threadid=1229 To briefly summarize, it is a way to short a stock without being bound by the short downtick rule. You purchase the stock you want to short, then simultaneously sell a call and purchase a put at or near your purchase strike price. When you want to short the stock, you simply sell your long position, thereby sidestepping the short downtick rule. The put that you bought increases in value as the stock drops, which is where your profit comes from. When you want to cover your short, you purchase the stock so you are long again, or simply close your options positions with your profits.