Why choose options trading

[marameo]

Can a trader sell volatility just by trading the underlying?

 

[Wheezooo]

Can a trader sell volatility just by trading the underlying?

No

 

[Robert Morse]

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

You can do as many trades as you want in a cash account until you run through your money. Then you have to wait for trades to settle to trade more.

 

[Robert Morse]

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?

I was very clear. Margin accounts under $25,000 are subject to PDT after 3 trades in a rolling 5 days. Cash accounts are not subject to PDT. Futures account are not either. Options on futures too, no PDT.
https://www.finra.org/investors/lea...ng/day-trading-margin-requirements-know-rules

 

[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, up to your Buying power at 1x.

 

[destriero]

Many brokers will not let you spread, or only on indices. Waiting on settlement sucks as well. Just stick to FOs.

 

[Turveyd]

Didnt have the settling rule when i traded options i dont think, more swing style, used to daytrade stocks.

 

[Robert Morse]

Didnt have the settling rule when i traded options i dont think, more swing style, used to daytrade stocks.

CASH account, not margin,

 

[KeLo]

I was very clear. Margin accounts under $25,000 are subject to PDT after 3 trades in a rolling 5 days. Cash accounts are not subject to PDT. Futures account are not either. Options on futures too, no PDT.
https://www.finra.org/investors/lea...ng/day-trading-margin-requirements-know-rules

Yes, you are crystal clear. I appreciate taking your time to post here.

 

[Turveyd]

CASH account, not margin,

Had Margin account for defo, 18years back so tricky to be 100%, shortly after PDT rule came out.

Just didn't break the rules I guess, so wasn't aware, stocks I used to close profit before the close every day, options swing style so wasn't an issue.