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Strategies & Market Trends : DAYTRADING Fundamentals

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To: exdaytrader76 who wrote (9310)	6/30/2000 9:08:36 AM
From: LPS5	Read Replies (1) of 18137

"EDAT," LOL. What they are calling a "forward conversion" is more commonly (at least in New York) known as a "bullet;" it's a synthetic hedging mechanism constructed of the proper number of out-of-the-money puts "married" to a long stock position. They generally cost about $100-$150 bucks and last from a few days to a few weeks. Don't lose your breakfast yet. They can only be used by registered individuals or accredited investors because their formation (I know of two firms that have it down to a science and do it for other firms) apparently constitutes, regulatorily speaking, a private placement. If a trading firm (sparing book-issued acronyms) is letting unregistered individuals - customers - use bullets, they're laughably wrong unless every one of those customers are accredited. Or, they're doing something different, which is possible - though bullets are the only method I've heard of which pass regulators' muster. LPS5 BTW to OZ: looks like the Chicago Stock Exchanges' UTP book (MWSE) may be joined by another regional soon; I just read that Cincy is considering getting on the box.

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