Daytrading OEX Options and PDT at IB

Discussion in 'Options' started by electron, Jan 11, 2004.

  1. I wonder if daytrading OEX options is subject to PDT restrictions at Interactive Brokers.

    The PDT rules, as I understand them, apply to stock and stock options, but do they also apply to index options?

    Of course, this again differs from brokerage to brokerage, optionsXpress being probably the most liberal in this respect even for stock option daytrading, but how specifically is it at IB?

    Anyone can enlighten me on this issue?

  2. Why daytrade options? Guess it´s not the timevalue you are after...
    Not to big spread??
  3. That's why.

    BTW, anyone using optionsXpress to daytrade options? I have an account with them, but their trading interface does not seem geared towards daytrading. It takes much longer than with IB TWS to prepare and send an order. But, OTOH, it could be safer too.
  4. That´s a good enough reason..

    Interesting..hmm :p
  5. Lucrum



    PDT rules do apply to index options. Personally I think it's absurd but they do.
    If your going to trade very short term you may want consider the e-mini stock index futures. They are very popular and for good reason. Tight bid/ask spreads and no PDT rules.
  6. Thanks, I do trade eminis, but was looking to diversify.

    OptionXpress waves PDT rules for their clients. I was hoping that IB might do this too at least for index options, for stock options they enforce them, but say nothing on their website about index options. I guess that might mean that they mean both stock and index options...
  7. Try thinkorswim. I don't day trade, but when I do trade they seem quicker than OX.
  8. My advice is to simply trade the ES futures options. I think the liquidity is better than the OEX and XEO. SPAN margin is a fraction of what index options margin is, and you will not have any PDT problems with futures options...
  9. Interesting, didn't know that ES futures options were so liquid.
  10. They aren't!
    #10     Jan 12, 2004