Why choose options trading

[vanzandt]

Mmm, I thought options on certain futures were excluded, if they were non-equity products? My basic understanding of it was, if the underlying of the option was not regulated by the SEC, the PDT rule would not apply.

You sir are correct.
No PDT for options on futures.
Plus 24/6 on those options too.

 

[KeLo]

PDT only applies to Equities and Options in a Margin account (Cash accounts have no PDT rule)

Are you saying that a $10k cash account @ Lightspeed can day-trade $1000 or $2000 in options everyday without being considered a Pattern Day Trader?

P.S. The regs seem poorly written IMO.

 

[gaussian]

Are you saying that a $10k cash account @ Lightspeed can day-trade $1000 or $2000 in options everyday without being considered a Pattern Day Trader?

PDT only applies to margin so this is true at any FINRA regulated broker.

 

[Robert Morse]

Are you saying that a $10k cash account @ Lightspeed can day-trade $1000 or $2000 in options everyday without being considered a Pattern Day Trader?

P.S. The regs seem poorly written IMO.

Yes. NO PDT on a CASH account.
Our Lightspeed Trader software typically requires $25,000 or more, but right now we have this promotion. https://www.lightspeed.com/Fund4Less/
Most smaller accounts choose Web trader. This is the old one-https://www.lightspeed.com/trading-platforms/lightspeed-web-trader/ but in the next 45 days we are moving to this one: https://www.sterlingtradingtech.com/products-and-services/platforms/sterling-trader-webmobile/

Bob

 

[KeLo]

PDT only applies to margin so this is true at any FINRA regulated broker.

Please note that all accounts with less than a $25,000 balance are not eligible for pattern day trading.

Non-Pattern Day Trading

As a non-pattern day trader, your account is limited to three (3) intraday (day) trades in a five-trading-day rolling period. This is a rolling five-day period and is not a week-by-week calculation. For example, if you place a trade on a Wednesday, the number of day trades will be calculated based on activity of the previous four trading days – Tuesday, Monday, Friday, and Thursday, with the present day as the fifth day.

https://www.lightspeed.com/non-pattern-day-trading-page/

So one cannot do one trade per day in a cash account.

 

[KeLo]

Yes. NO PDT on a CASH account.
Our Lightspeed Trader software typically requires $25,000 or more, but right now we have this promotion. https://www.lightspeed.com/Fund4Less/
Most smaller accounts choose Web trader. This is the old one-https://www.lightspeed.com/trading-platforms/lightspeed-web-trader/ but in the next 45 days we are moving to this one: https://www.sterlingtradingtech.com/products-and-services/platforms/sterling-trader-webmobile/

Bob

This was just for the sake of clarification on this PDT subject. I am mostly trading futures due to tax benefits and accounting simplicity. I also do not need a sub-$25k account for equities.

My point was that sub-$25k equity accounts are limited in the number of trades per week allowed. Your post could be interpreted that one is allowed to trade more frequently in a cash account, at least that is the way I read it. Perhaps you meant a >$25k cash account?

 

[ffs1001]

Why do I trade options?
- Because they allow me to sell time and volatility.
- Allow me to profit using delta-neutral strategies.
- Give me an almost endless way of structuring a trade, to fit my market opinion

 

[zghorner]

options are definitely not easier than equities at least for new traders...i was making consistent gains day/swing trading individual stocks the past several months and have lost all of that and then some in 3 weeks of options trading.

 

[ironchef]

Why do I trade options?
- Because they allow me to sell time and volatility.
- Allow me to profit using delta-neutral strategies.
- Give me an almost endless way of structuring a trade, to fit my market opinion

All fine and good. The bottom line though is whether it is more profitable for you in the long run?

 

[ffs1001]

The bottom line though is whether it is more profitable for you in the long run?

I trade for a living and with my own funds (for around 10 years). So, the answer is a "Yes". For me. Because my strengths and personality is more suited to trading time and volatility rather than direction.

For others, futures/stocks will be more suitable instruments. To each, his own.

Happy trading whatever your weapon of choice.