PDT inquiry using different strikes/expirations ???

Quote from spindr0:

The first part I agree on but not on the second. If the close and re-open occur on the same day, that's a round trip.
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sorry, but that is not the case. it is not a round trip if you close out a long position and re-establish it. only if you close it again. when it comes to day trading the sequence of events matters.


(B) Day Trading
(i) The term “day trading” means the purchasing and selling or the selling
and purchasing of the same security on the same day in a margin account except
for:
a. a long security position held overnight and sold the next day
prior to any new purchase of the same security, or
b. a short security position held overnight and purchased the next
day prior to any new sale of the same security
 
Quote from johnnyc:

sorry, but that is not the case. it is not a round trip if you close out a long position and re-establish it. only if you close it again. when it comes to day trading the sequence of events matters.

(B) Day Trading

(i) The term “day trading” means the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account except
for:
a. a long security position held overnight and sold the next day
prior to any new purchase of the same security, or
b. a short security position held overnight and purchased the next
day prior to any new sale of the same security
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FINRA says that any margin customer who buys then sells OR sells short then buys the same security on the same day has incurred a day trade. I have never seen any qualification that says that if you already had a position, that negates the buy and sell of the same day (or conversely, the sell short and buy of the same day) and therefore that isn't a day trade.

You may be an expert on PDT rules. I certainly am not.
 
yeah, basically how it works is if I carried the XYZ March 15 calls long overnight I can sell them to close and buy them back later that same day and it's not considered a day trade. But if I first add to my position and then close out then it's a day trade even if I didn't close out the entire position and just sell what I bought that day. The day trading rules are some of the most ridiculous rules ever.
 
open 1 position and close THAT SAME POSITION (or legs of that position) in the same day is a day trade.


it has nothing to do with the underlying asset.
 
and technically when if you day trade a spread each leg is it's own day trade. so your typical debit/credit spread would be 2 day trades, regular butterfly is 3 day trades, iron condor 4, etc..but not all firms from what I've seen do it that way. some will say if you put it on as a spread and close it as a spread then it's just one day trade. not quite sure why people day trade spreads, but I know some people do
 
Quote from johnnyc:

and technically when if you day trade a spread each leg is it's own day trade. so your typical debit/credit spread would be 2 day trades, regular butterfly is 3 day trades, iron condor 4, etc..but not all firms from what I've seen do it that way. some will say if you put it on as a spread and close it as a spread then it's just one day trade. not quite sure why people day trade spreads, but I know some people do.
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You are just making stuff up. I highly doubt anyone would day trade a spread, unless they had fat fingers.
 
Quote from ForexForex:

You are just making stuff up. I highly doubt anyone would day trade a spread, unless they had fat fingers.
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LOL, sadly I'm not making that up. Lots of people do it
 
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