Daytrading options

Discussion in 'Options' started by NasdaqTrader, May 25, 2004.

  1. As is the case with stocks if you plan to daytrade 4 or more times over a 5 day period,does one need to have at least $25k in their account to daytrade stock options?And what about stock index options?
  2. c_verm


    Yes, You must have 25k in your account daytrade 4 or more times in a 5 day period no matter what you trade (stocks, options, or ETF's) unless you use Ameritrade as a broker, they dont enforce the rule for some reason. Hope this helps.
  3. You mean for options only, or for stocks too?

    I am unhappy with the PDT rule because I am not US national/resident...
  4. c_verm


    Every trader must have minimum $25K in their trading account if you want to place 4 or more daytrades in a 5 day period. For example you must have 25K if you want to day trade US stocks, US options, US ETF's, CANADIAN stocks & options ect..

    Hope this helps:)
  5. %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%


    May want to think about the fact that most of the[non market maker] money made is NOT being traded more than 4 times a week;
    however you could double your trading frequency which may or may not be wise by 2 - $ 12 k accounts
    at different company accounts.

    Hey, Italy & Spain has excellant olive oil.

    In a multitude of cpinsellors there is safety.
    Solomon, trader king.
  6. I assume that this also applies to index options as well?
  7. atorchio; if you're in italy, why not just trade eurex options?

    no pdt rule applies to them :)

  8. c_verm


    Yes it applies to index options as well.
  9. If you or anyone else is making good money DAYTRADING options please fill us in. With those spreads and lousy execution I'd love to get some insights.
  10. Maybe I'm missing some great truth, but I rarely see where daytrading the option beats daytrading the stock itself. You just wind up paying the fat spread to the MM's,

    There are some rare instances where the option is mispriced in front of spiking volitility in the stock, so if you're very fast, you might capture that.
    #10     May 25, 2004