Conversions / Bullets

Originally posted by GATrader
That is why I don't sell the call coz short options have higher margin rates. This opens me up to possibility of selling a way OTM call later when stock goes up and make better $.
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OK, but this is not a bullet then, nor its approximate equivalent. I think that Archangel has nailed the explanation pretty good.
Elvis
 
Well.... technically it is not a bullet . A bullet is a married put. It is an intrinsic deep in the money put married to long stock. At the end of the day, the long stock is offset by the long put which gets exercised automatically.

Long put short call long stock is a reversal or a reverse conversion. You could call is a bullet since it has but one prupose-to circumvent the uptick rule. In reality it is a synthetic long call. the difference in doing it this way is that you give up the premium you'd otherwise get by selling the call at the beginning of the position initiation BUT open yourself up for possible gains or losses later.(losses are limited however though)
 
They are a firm that specializes in giving true bullets to the retail trader. I believe that they are out of Florida and they charge you a small commission to have the ability the immediately be able to sell a stock on the downtick. Get tool to have.
 
Essex does not seem to have a presence on the Web. And would you not have to be trading with them? How else you gonna sell on the dt.
 
i used essex for over a year. service unbeatable. when i considered going out on my own, they wouldn't talk to me as I wasn't a bd. might be different now. they are in the orlando area.
 
Is there any contact information available for Essex-Radez ?

Would love to lern more about them / their service.

Thanks
 
Just a note. Bullets & Conversions are strategies generally to be used by professional traders, not retail(IB ,CyberTrader etc.). If
you are a customer (hedge fund) at a prime broker, Conversions and bullets may be available. Generally the margin associated with these strategies make Bullets & Conversions too expensive for a retail customer. Customer accounts may not be set up for these strategies. I would suggest all traders who would like more information on Bullets and Conversions contat a pro firm like ECHO,Lieber & Weissman, Bright , Genaric etc. The Bullets offered by ESSEX-RADEZ are really a one day Conversions, not true bullets(Long deep put , Long stock) . ESSEX-RADEZ will usually only deal with Broker/Dealers who are qualified to do these strategies.



Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net
 
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