"BANG" Option Trading...taking $1,000.00 to $100,000

Discussion in 'Chit Chat' started by increasenow, Sep 18, 2009.

  1. Increasenow should be fine, since I don't believe PDT rule applies to paper trading :)

     
    #101     Jan 31, 2010
  2. good one RR...actually...want to use all(or most) cash in one trade per day or one trade 1-3 days...
     
    #102     Jan 31, 2010
  3. no, you can use all your cash in one day...example: buy in morning and sell in afternoon using all cash...so, you could do 5 all cash trades per week at max...buy and sell on monday, buy and sell on tues...wed...thur...fri..that would not be patterdaytrader
     
    #103     Jan 31, 2010
  4. did not say I had a $1k account...just seeing what a $1k position could generate
     
    #104     Jan 31, 2010
  5. as for patterndaytrader stuff...click here:
    http://www.patterndaytraderrule.com/

    looks like the only scenario that would hurt is if I did any certain option 5 days in a row (buy and sell in same day)..I.E...buy and sell QQQQ options mon,tues,wed,thur, frid.....could do QQQQ for 4 days and than GLD or SPY on one day...would be fine
     
    #105     Jan 31, 2010
  6. NoDoji

    NoDoji

    Once you do 4 day trades in a 5-day period, your account is subject to PDT regs.
     
    #106     Feb 1, 2010
  7. Increase, until you make ONE REAL LIVE TRADE, I don't think you have to worry about trading too much! :D
     
    #107     Feb 1, 2010
  8. huh?...does not sound correct...please read the article I posted
     
    #108     Feb 1, 2010
  9. okay, so let's say I buy SPY options in the AM and sell the same day later..on mon...then do QQQQ options on Tues...then FAZ options on WEd, then QQQQ again on Thurs and then MSFT on Frid...is it about using my total cash in acct that means PDT...or...must be of same option? IE QQQQ buy and sell all 5 days of week?...bottomline...give me an example of how many times per week can I simply use all cash in account and buy and sell in THAT SAME day and not be considered PDT???
     
    #109     Feb 1, 2010
  10. sounds here like I could buy and sell QQQQ options in the same day at least 3 days straight...then skip a day to avoid PDT?...correct?

    Basic pattern day trader rule summary:

    An NASD & SEC rule that applies to anyone who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules. The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000 in a margin account.

    A more complete version is listed here: NASD Rule 2520
     
    #110     Feb 1, 2010