Bye-bye reg T
- Thread starter just21
- Start date
So basically selling a goog strangle then a few days later buying the wings will not be considered day trading correct? So the "combo to fly" type of trade will be imminently more do-able in a PM? also the reverse calendar.
You can't trade futures or futures options in the PMA account. No reason to really. And you cannot cross margin them.
BTW, here is a letter from Fimat to the NYSE expressing their concerns for the pattern day trading restrictions and their desire to remove them.
http://www.sec.gov/comments/sr-nyse-2006-13/nyse200613-5.pdf
http://www.sec.gov/comments/sr-nyse-2006-13/nyse200613-5.pdf
There is a lot of debate right now as to what constitutes a hedge. The rules on this are very vague and it might be open to the broker for interpretation. There are a lot of angry people that want clarification on exactly how they define a hedge.
RR, as long as you dont adjust/offset intraday, you should have no issues with the PDT rules. Tough luck for intraday gamma scalpers if buying/selling stock isnt considered a hedge but for the rest of us, this should provide plenty of margin relief.
The collar guys at optionetics will be pissed.
Well after reading the SEC document, i am starting to believe that mav is right about the $5 million req to escape PDT. So unless your broker considers you flipping stock against a combo to be hedging(taking risk away from) the initial position, you cannot do more than 3 intraday adjustments in a weeks time frame. Notice, this shouldnt be a concern if you carry your extra deltas overnight.
That is my understanding. I say we wait and see on the definition of hedge.
I don't see HOW they CAN...seems to be the definition of hedged...buying a put to "hedge" against loss from a stock position.