"Old School" trader needs some 2007 info and help

El OchoCinco · Nov 16, 2006

OK I was not trying to be nasty I was just curious at the extremes listed.

I think you can join any prop firm you want to for trading, they need not hire you. Of course you will be trading on your own.

Best of luck.

Old School · Nov 17, 2006

Thanks for all the replies.

I see mother nature has taken her course in the business.

Looks like the best days of soley trading equity prop trading is gone. From the PM's and replies, my best guess is that the traders still making money have broadened their markets and also have adjusted their trading to the equity mkts of 2006.

I knew the landscape would be different, but it seems many profitable traders from before are trading across many more markets now. Is this a fair assessment?

Don Bright · Nov 17, 2006

Log in to our Forum if you like. Also, feel free to call to chat at anytime (mid trading day is usually a good time).

Don 702.739.1393

Old School · Nov 17, 2006

Thanks Don,

Regardless of what people might say about this business and prop firms, I am glad to see your name is still around. I recall meeting you in or around 1996 in your NYC offices. Straight shooter then, still a straight shooter I see.

I remember when you said 1c/share I said, "how's that possible?" lol

Don Bright · Nov 19, 2006

Quote from Old School:

Thanks Don,

Regardless of what people might say about this business and prop firms, I am glad to see your name is still around. I recall meeting you in or around 1996 in your NYC offices. Straight shooter then, still a straight shooter I see.

I remember when you said 1c/share I said, "how's that possible?" lol

Hey, thanks...always nice to hear some good things...and, don't worry, I can still make 1 cent possible (not likely these days, however, LOL). Straight shooting may not make everyone happy, or even accepting of the truth, but as I get older, it sure makes it easier to remember...remembering the truth is a lot easier than trying to remember some made up stories.

Gosh, it has been over 10 years since I was "dragged" back into the family business...man how time flies when you're having fun as they say.

All the best, let me know if I can help with anything.

Don

fortunatti · Nov 19, 2006

I don't mean to sidetrack the discussion, but what are/were "bullets"?

I trade grain futures and options, not as much experience with stocks....

Maverick74 · Nov 19, 2006

Quote from fortunatti:

I don't mean to sidetrack the discussion, but what are/were "bullets"?

I trade grain futures and options, not as much experience with stocks....

Conversions.

onelot · Nov 19, 2006

Quote from Maverick74:

Conversions.

Not really... but yeah, in the sense bullets don't exist anymore, these are your only solution.

Conversions are a neutral long put/short call position with long stock that leaves you with limited/no directional exposure. Selling your long stock effectively makes you synthetically short. The conversion has hold periods typically of a month or more.

Bullets just worked a long ITM put with long stock and no short call. The main thing about bullets and why they were x'd by the SEC, was that they were created on the fly using OTC options with one day expiries by bullet firms specifically for the pupose of getting around the uptick rule.

As more stocks become SSE'd these tools are becomming less useful.

aPismoClam · Nov 19, 2006

I think one year I spent 80 grand in bullets alone.

Maverick74 · Nov 19, 2006

Quote from onelot:

Not really... but yeah, in the sense bullets don't exist anymore, these are your only solution.

Conversions are a neutral long put/short call position with long stock that leaves you with limited/no directional exposure. Selling your long stock effectively makes you synthetically short. The conversion has hold periods typically of a month or more.

Bullets just worked a long ITM put with long stock and no short call. The main thing about bullets and why they were x'd by the SEC, was that they were created on the fly using OTC options with one day expiries by bullet firms specifically for the purpose of getting around the uptick rule.

As more stocks become SSE'd these tools are becomming less useful.

Actually that transaction you speak about never took place. That was the issue of why they were done away with. It was essentially an accounting transaction. No OTC trade ever took place to create the bullet. Just a little FYI for ya.