Holding (option) positions overnight

P

paulus

Hi,

When developping a tradingplan one should have rules for eventually holding positions overnight. Which are the principles
to be taken into account ? Any suggestions ? Thanks

Paulus
 
are an illustration of what can happen overnite,As long as the size is not too great and your comfortable with the risk,go with it if it fits your model
 
Anticipation of news related to the market, the sector to which your stock belongs and news specific to your stock should be taken into account when considering whether to hold a short term position overnight. For example, you would not want to hold calls overnight if you anticipated an announced earnings shortfall for the stock the next day.
 
Paulus,

One thing to consider is the volume of the options that you are trading, in most cases you are going to get the biggest surge in volume at the beginning or end of the trading session. Unless your timing is genius you will need this to avoid paying a huge spread to exit a position.
 
I use IB to trade stock option, it is not regulated by potential day trade pattern, so no matter what is my balance, I can trade as many time as I want as long as i have the margin, but from today, the option seems under the rule of potential day trade pattern suddenly. does anybody have the same problem?
 
Be prepared for the worst when doing this, adjust your

position size accordingly.....just look at the last few days

as an illustration for this.....
 
sorry, don't quite understand what you say. My question is : anybody know the potential day trade pattern applys to stock option? IN IB , does it take into effect from today? why I only encounter this today?
 
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