QQQQ & SPY Options Trading: 1 Trade per day with $2,000 Account

Quote from increasenow:

I am in two put positions with QQQQ and SPY...incurred huge drawdown on thursday like to losing $600...but..the SPY is only in the whole $15 and QQQQ about $100 or so...normally I would have pulled out but let's see...options offer the overnight longer range than futures...i cannot hold overnight because do not have the cash
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If $600 is 'huge' and if you cannot hold overnight, then you are not ready to trade options.

Please don't use options to gamble.

Mark
 
Quote from dagnyt:

If $600 is 'huge' and if you cannot hold overnight, then you are not ready to trade options.

Please don't use options to gamble.

Mark
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no, what I was saying is that I cannot hold futures overnight due to not having enough margin...but I can hold overnight on options...and yea...totally not gambling at all...serious trading only...
 
So long as he stays in cash and keeps margin off he'll be fine. Judging from his pretend trades he has no real use for margin.
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Avoiding mamrgin won't prevent the OP from being labeled a pattern day trader.

If he makes more than 3 day trades within five business days, he's a PDT and must mmaintain $25G in his account... unless the number of day trades is 6% or less of total trades for the five business day period. So if he doesn't have the 25G, he'll have to trade infrequently, stay under 6% of total trades or hold overnight.
 
Quote from SForce:

So long as he stays in cash and keeps margin off he'll be fine. Judging from his pretend trades he has no real use for margin.
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Wrong...:D
 
Quote from spindr0:

Avoiding mamrgin won't prevent the OP from being labeled a pattern day trader.

If he makes more than 3 day trades within five business days, he's a PDT and must mmaintain $25G in his account... unless the number of day trades is 6% or less of total trades for the five business day period. So if he doesn't have the 25G, he'll have to trade infrequently, stay under 6% of total trades or hold overnight.
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Despite your belief, and misinformation, you are wrong. So is nlslax who posted after this. I'm not speaking from my ass on this, I'm in a cash account and don't get labelled PDT and don't have a 25k requirement.
The majority of brokers follow the rule how it was written, not how some interpret. You'd have to check with your specific broker for the interpretation they follow. I can name at least 4 brokers off the top of my head that don't flag cash accounts as PDT since the rule says PDT applies to margin accounts.

For your viewing pleasure here is a link to a major broker addressing this topic directly.

Read the last line under the first section, titled "Learn about FINRA Rule 2520 and NYSE Rule 431", just before you see "Note" in bold.

https://us.etrade.com/e/t/estation/pricing?id=1307030000#__highlight
 
Quote from SForce:

Despite your belief, and misinformation, you are wrong. So is nlslax who posted after this. I'm not speaking from my ass on this, I'm in a cash account and don't get labelled PDT and don't have a 25k requirement.
The majority of brokers follow the rule how it was written, not how some interpret. You'd have to check with your specific broker for the interpretation they follow. I can name at least 4 brokers off the top of my head that don't flag cash accounts as PDT since the rule says PDT applies to margin accounts.

For your viewing pleasure here is a link to a major broker addressing this topic directly.

Read the last line under the first section, titled "Learn about FINRA Rule 2520 and NYSE Rule 431", just before you see "Note" in bold.

https://us.etrade.com/e/t/estation/pricing?id=1307030000#__highlight
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Your undestanding is correct (for cash accounts). In addition trade clears in T+1, which is good.
 
Quote from riskfreetrading:

Your undestanding is correct (for cash accounts). In addition trade clears in T+1, which is good.
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Thanks for the reassurance. I know it is. If I were wrong I'd have a few locked accounts right now.
 
yea guys...I've totally cleared this type of trading with my broker...total cash account (no margin account) and buy and then sell once per day or buy on one day and sell on the next and buy at end of day (but not close out and sell that day) and from there...SPY are most liquid...
 
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