Bullets??

used to offer both retail and prop bullets at my previous firm...margin is 10% aggregate exercise price(10% strike*shares) it used to be much higher...since strike is usually 20% above price, margin is more like 12%m, still really low...
 
Quote from fattyasids:



Retail firms do have bullets. I know for a fact.

My question to you - when you put on long term married puts, are the options marked to market properly? That has always been a problem where I've been.
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I'm not sure what you mean by "properly"? Mark to Market usually implies that last trade, or the better bid or offer from last price. This may or may not have anything to do with the true valuation. You may end up with extra money showing up in your account (don't try to spend it), or a less money in your account)...depends on the marks. We add and remove based on Fair Value, don't conern ourselves with the marks very often (unless there is a $10,000 difference or something). We figure that half the time it will be in the traders favor.

Either way, it shouldn't be a "problem." since most firms have FV calc's involved.

Don
 
Quote from dvs:
used to offer both retail and prop bullets at my previous firm...margin is 10% aggregate exercise price(10% strike*shares) it used to be much higher...since strike is usually 20% above price, margin is more like 12%m, still really low...
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Yeah, that's what it should be for a married put. I believe IB uses that margin calc too now.

Although a married put or other hedged position can be used if you're trading in and out of positions over multiple days or holding positions for longer than intraday - outfits like Xoom do offer real bullets (cost of 1.5 cents/share I think for the day).

BTW - the term is "retail and PRO", not "retail and PROP" - firms like Bright, Echotrade, etc. are Pro firms, not Prop firms.

"Prop" refers to a private (proprietary) trading firm that trades their own account(s), not one that provides facilities for outside traders to trade their personal accounts.

For some reason, it's become a commonly misused term.
 
Quote from fattyasids:



Retail firms do have bullets. I know for a fact.

My question to you - when you put on long term married puts, are the options marked to market properly? That has always been a problem where I've been.
More...

This can be a problem especially in thinly traded options/classes. Some firms will mark mid-point between the latest bid/offer when this happens
 
I can assure you that we offer our traders the ability to trade Bullets directly on our Direx trading platforms. Our commission schedule for bullets is $15 per 1000 shares.

It is a tool I see more and more professional traders use and profit from. Bullet Trading is the trend. I'm surprised more retail firms do not offer bullets.

Best Regards To All

XoomTrade Support
www.xoomtrade.com
email: support@xoomtrade.com
 
Quote from XoomSupport:

I I'm surprised more retail firms do not offer bullets.

XoomTrade Support
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Given the SEC has commented that they "frown" upon the use of bullets, we are seeking a no action letter before we offer them.
 
def, is it frown for retail and a smirk for the pros or is it frown for any trader classification?

I am suprised that it is allowed since it violates the spirit of the downtick rule
 
I don't understand it. If they frown on it, why not frown on it on everyone? Without exception, every professional and proprietary firm offers them :confused:

Add to that the myriad of prof/prop firms that have a retail arm. Add to that the few retail firms that offer them, period :confused:

Who are they trying to protect? The investor that is going to go and grab a bullet? LMAO.

ANYONE WHO HAS A MARGING ACCOUNT AND HAS BEEN LABELED A PATTERN DAYTRADER SHOULD HAVE ACCESS TO THEM, prop, prof, or retail.

On the plus side def, I am glad that IB is taking the lead on this and not letting other retail firms take away the undisputed lead it has over every other retail firm in just about every other category. Kudos to you guys...

:confused: nitro :confused:
Quote from def:



Given the SEC has commented that they "frown" upon the use of bullets, we are seeking a no action letter before we offer them.
More...
 
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