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Question for experienced traders
- Thread starter Carlos11
- Start date
There is no downtick rule for futures or ETF's.
You can use the search feature here on EliteTrader to learn everything there is to know about them. The quick answer is that by combining long stock and a put option, you get a "bullet" which allows you to sell stock on a downtick. Thus, getting around the downtick rule. The SEC has recently banned bullets (I believe, I haven't followed it much).
Quote from Digs:
What the hell is bullets.... I trade from home, not a firm, so some one put me out of my misery , and tell me what is the big deal about bullets...
Years ago Trading used to be an intellectual challange....OK I am going back here.....WAY BACk....
before the Bullet mania,
before the Internet "buy the dips for the up $30 yhoo, cmgi, etc , mania,
before the Harvey Houkin Soes Bandit era,
It took some work, disciple, intellect, whatever you want to call it to be a "trader". Just look at the works of Gann, Eliott, Livermore, Granville, Richard Russell, etc.
elimination of bullets is just more of the "shake" going on reducing the number of traders.....maybe we are just getting back to more of a norm.
Quote from spyderman:
Years ago Trading used to be an intellectual challange....OK I am going back here.....WAY BACk....
before the Bullet mania,
before the Internet "buy the dips for the up $30 yhoo, cmgi, etc , mania,
before the Harvey Houkin Soes Bandit era,
It took some work, disciple, intellect, whatever you want to call it to be a "trader". Just look at the works of Gann, Eliott, Livermore, Granville, Richard Russell, etc.
elimination of bullets is just more of the "shake" going on reducing the number of traders.....maybe we are just getting back to more of a norm.
I certainly have to agree with you about "getting back to the "norm".... I say "bring back the chalk boards" "get my $2 broker on the phone".... the "norm" now is (volatility, trading strategies, etc.) is reflecting bygone days...and, as we "old timers" say...the market is just one big circle....Jesse could come back today and do just fine (he'd have to learn how to use a DOT machine, however)...LOL
Don
Quote from Carlos11:
Can a trader legally downtick a stock in any other exchange without bullets?
What else can traders legally downtick? ETF's, SSF's?
Thnx for the info.
Someone correct me if I'm wrong, but can't you short on downticks in the extended hours? Sometimes not at levels below the regular session close though.
Last time I checked, although Nasdaq was considering the benefits of the NASDâs short sale rule in after-hours trading, it was currently not applicable outside of regular market hours (NASD Notice to Members 94-68).