Pattern Day Rule bypassing per example

so what your saying is theta overnight is nonexistant.. meaning its the same to time risk holding a stock as there is holding a synthetic options position? lol
 
Quote from cdcaveman:

so what your saying is theta overnight is nonexistant.. meaning its the same to time risk holding a stock as there is holding a synthetic options position? lol
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lol were you dropped on your head?
 
Quote from cdcaveman:

so what your saying is theta overnight is nonexistant.. meaning its the same to time risk holding a stock as there is holding a synthetic options position? lol
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Yeah, that's what I was stating. A long call/short put at x-strike is equivalent to long the natural shares.
 
Quote from atticus:

Yeah, that's what I was stating. A long call/short put at x-strike is equivalent to long the natural shares.
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yeah i followed that.. i was just wondering how you assumed that there are no other risks moving from the underlying to a synthetic position.. IE Theta, bid ask slipage, vol changes... maybe i'm way off.. i was just curiously asking you..
 
Quote from cdcaveman:

yeah i followed that.. i was just wondering how you assumed that there are no other risks moving from the underlying to a synthetic position.. IE Theta, bid ask slipage, vol changes... maybe i'm way off.. i was just curiously asking you..
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bc I'm not an idiot. How much theta or vol-risk in long GE shares?
 
just do not day trade, everything is ok.
with a small account and day trade is a sure way for failure.

if you have 1m account, day trading is good.

if you barely have 25k account, forget about day trading.

or you can trade future. then there in no pdt rule applied. but you need agressive risk management and margin, bad, almost another sure to lose.

I do not sugest you to day trade for the sake of day tarding.

for a small account, do not use margin, do some research, deliberately do each trade good. just for spy 135 to 136, that is sucker's game.

do not be a sucker, be a winner. each trade must be throughly researched and do not let it down, with risk management at 10% of your account each trade. strickly.

turn your account into cash account, do not use margin. find the most strong market to buy.

you will be good.
 
Quote from cdcaveman:

so what your saying is theta overnight is nonexistant.. meaning its the same to time risk holding a stock as there is holding a synthetic options position? lol
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I guess the long call option time decay (you lose it) is offset by the short put option decay (you gain it back), so there is virtually no theta to be concerned about.
 
Quote from Bry:

I guess the long call option time decay (you lose it) is offset by the short put option decay (you gain it back), so there is virtually no theta to be concerned about.
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there is a cost of carry... but its nothing considering the time your in and out.. and yes.. the sale of the same strike put to the purchase of a call offsets the theta.. covering a long position in a day trade would be to sell a call and buy a put.. conversion is what its called... essentially your short stock in a synthetic options position completely offsetting your long position in the underlying..... you can leave it to expiration if you really wanted.. but if the put is in the money you need to call your broker and make sure you excise your put
 
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