Just got a $21,508.58 margin call (DAY EQUITY CALL)

[ironchef]

No. In a cash account you are not subject to the PDT rules of Regulation T.
You can generally short options as long as your cash amount is enough to cover any potential assignment or max-loss.

That was what I meant, cash secured puts, or covered calls.

 

[Robert Morse]

In a cash account you cannot short options without the cash/underlying to cover, so you can only go long?

No shorting in a cash account. Only longs. Stocks settle in 2 days and options in 1.

 

[Grantx]

It is a FINRA Regulation. http://www.finra.org/investors/day-trading-margin-requirements-know-rules
The only way out it would be if TD were to agree to cancel the trades.

Interesting. Does that apply to futures trading as well?

 

[Robert Morse]

No. Futures have no PDT or min account size from the NFA/CFTC.

 

[zdreg]

No. In a cash account you are not subject to the PDT rules of Regulation T.
You can generally short options as long as your cash amount is enough to cover any potential assignment or max-loss.

it seems doubtful the way you wrote it, under your scenario you can't sell an uncovered call option because the loss is theoretically unlimited.

 

[Ryan81]

You can short a call and buy a higher strike call.

 

[SoesWasBetter]

Good excuse to close the account and do something productive with your life

 

[Robert Morse]

You can short a call and buy a higher strike call.

I’m not aware of any broker that allows spreads in a cash account.

 

[Ryan81]

I’m not aware of any broker that allows spreads in a cash account.

I don't have any cash accounts myself, but I thought (at least at one point?) that IB let you do spreads in a cash account as long as they were european style options. I could be wrong though.

 

[thaitye]

I have a smaller balance with Ameritrade and even though Thinkorswim said I was in the clear to make one more same day trade, I somehow got flagged with day-trading while under a $25,000 balance (for this particular broker).

I didn't realize that day-trading an option would trigger this, but I fucked up apparently. If I e-mail them that this was a one-time mistake, will they remove the flag from my account? My biggest concern is not meeting the margin call and then getting flagged with other brokers because of this. Otherwise, my account is currently in the black with no other problems.

Why is this even a regulation?

The easiest way to fix this problem is simple, don't be a pleb and lose money.