Bright now accepting Series 56

timcar · Nov 5, 2013

To Don Bright

Many traders would say thank you for what you and your family has helped so many stock traders to learn that helped many of them out.

Truely thank you DON

DT3 · Nov 6, 2013

So is it possible for Don or current Bright traders to post what a hedged overnight position would look like along with fees associated for holding overnight.

FXforex · Nov 6, 2013

Quote from DT3:

What does a hedged position mean exactly? If I'm long $50k worth of FB I have to be short $50k worth of SPY? Can you give an example along with the fees for holding over night. Thanks

Quote from DT3:

So is it possible for Don or current Bright traders to post what a hedged overnight position would look like along with fees associated for holding overnight.

My guess it would be something like:

Buy 1000 shares FB @ $50.00 = $50,000.00
Buy 10 contracts FB Nov8 2013 46.00 puts @ $0.26 = $260.00

EDIT .... The option price should be a tad lower. Yahoo Finance option quotes on Tuesday were stuck from Mondays close.

Don Bright · Nov 7, 2013

Quote from timcar:

To Don Bright

Many traders would say thank you for what you and your family has helped so many stock traders to learn that helped many of them out.

Truely thank you DON

Thank you so much, it's really nice to hear... I'll even show my wife, LOL.

Seriously, thanks!!

Don

Don Bright · Nov 7, 2013

Quote from DT3:

So is it possible for Don or current Bright traders to post what a hedged overnight position would look like along with fees associated for holding overnight.

No need to bother the traders, or divulge pairs etc. It's pretty simple. You get 6 times your equity with no additional Bright fees, from 6-10 times, it's 2% per year. 4% at 10-5, and you can go up to 30 times or more....it's up to the trader to determine if the profits outweigh the costs...

So, it's all up to your strategy, pairs or whatever else you hedging with.

All the best,

Don

Don Bright · Nov 7, 2013

Quote from FXforex:

My guess it would be something like:

Buy 1000 shares FB @ $50.00 = $50,000.00

Buy 10 contracts FB Nov8 2013 46.00 puts @ $0.26 = $260.00

EDIT .... The option price should be a tad lower. Yahoo Finance option quotes on Tuesday were stuck from Mondays close.

Or pair off with other equities, we never suggest "buying" options, no real edge in that, IMO.

so, say you're long 250K of stocks, and short 100k of paired off, you can simply buy or short SPY or similar to be dollar neutral to the market.

Don

Maverick74 · Nov 7, 2013

Quote from FXforex:

My guess it would be something like:

Buy 1000 shares FB @ $50.00 = $50,000.00

Buy 10 contracts FB Nov8 2013 46.00 puts @ $0.26 = $260.00

EDIT .... The option price should be a tad lower. Yahoo Finance option quotes on Tuesday were stuck from Mondays close.

They don't trade options at Bright.

Technically speaking, Don is not talking about hedging specific stock risk, he simply wants traders to hedge overall market risk. In other words, on a day like today, Bright Trading would be kaput if the firm was 800% long and strong. Hopefully those SPY shorts brought in some p&l today.

tradingjournals · Nov 7, 2013

Quote from Don Bright:

Well well well, it seems that the Exchange has now approved the 56 for our traders. So, the traders that had to take the S7 after taking the S56.

I know I spoke for taking the 7, which is good everywhere, the last couple of years, but since these exams really don't reflect a traders ability, I'm good with it now.

All the best,

Don

Who are your competitors?

DT3 · Nov 8, 2013

Ty Don. I'm just trying to see if the type of trading I do is compatible with your firms offering.

Maverick74 · Nov 8, 2013

Quote from DT3:

Ty Don. I'm just trying to see if the type of trading I do is compatible with your firms offering.

They trade pairs so the hedging question is kind of complicated. They basically hedge through diverse selection. In other words, by having 100's of or at least dozens of pairs on so that any one pair does not produce systemic risk along with overall market risk. They don't really just buy FB and sell SPY against it and hold one position. They would be insolvent if they did that. Hell, FB rallied more then 100% while the SPY was up 5% in the same period. You do the math if you were short FB and long SPY.