PDT and options

[John47]

I'm guessing that options, like the futs, being derivatives, that the PDT rule does not apply...am I right in this thinking?

thanks in advance

 

[freehouse]

Quote from John47:

I'm guessing that options, like the futs, being derivatives, that the PDT rule does not apply...am I right in this thinking?

thanks in advance

All SEC regulated options (i.e., options that trade on the AMEX, BOX, CBOE, ISE, Philly, or P-Coast) are subject to the PDT rule.

 

[volente_00]

It will trigger PDT on your account but you can still buy and sell puts and calls as many times as you want because buying options is strictly cash with no margin used. But once you trigger it you will not be able to trade equities using margin without bringing your account to 25k first.

 

[volente_00]

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_005906

 

[Xenia]

I'm guessing that options, like the futs, being derivatives, that the PDT rule does not apply.

Do you mean options on futures ?

 

[atorchio]

Quote from volente_00:

It will trigger PDT on your account but you can still buy and sell puts and calls as many times as you want because buying options is strictly cash with no margin used. But once you trigger it you will not be able to trade equities using margin without bringing your account to 25k first.

Are you sure? the link you provided says:

"Does the rule apply to day trading options?

Yes. The day trading margin rule applies to day trading in any security, including options."

 

[volente_00]

The key word is"margin"


options are traded on a CASH BASIS only.



Daytrading them will trigger to mark your account as PDT, but you can still daytrade options. Call your broker and ask them.


You will have to wait for the trade to settle before you reuse the money from the last trade unless you have excess cash in the account already.

 

[iceman1]

Quote from John47:

I'm guessing that options, like the futs, being derivatives, that the PDT rule does not apply...am I right in this thinking?

thanks in advance

yes

the SCAM pdt rule applies to options--- believe it or not-- but we are gong to do something to see if we can change that!

Ice

 

[loufah]

The PDT rule does apply to options, and you may be surprised to find that some brokers (a) count the expiration of worthless options as a trade on the Friday before the Saturday they actually expire and (b) do not offer an exemption if the number of day trades is less than 6% of total trades during the 5-day period.