Is there anything i can do to get around the PDT rule?

Discussion in 'Trading' started by cashclay, Oct 25, 2022.

  1. alistera

    alistera

    That all depends, an overseas corporation is $500-$1000 which acts as intermediary, there are beneficial ownership issues but that comes down to broker, you will find one, there are some ideas on reddit how to also do it, or emigrate which is always the more interesting option!
     
    #41     Nov 1, 2022
  2. Overnight

    Overnight

    What does that spread have to do with Nasdaq? And what is your definition of synthetic? I've only heard that term in use for options, not futures.
     
    #42     Nov 1, 2022
  3. Real Money

    Real Money

    Here's a picture (NQ chart in white with index points on left axis) Synthetic Naz.png
    The cash value of the spread is on the right axis (differential of contract notional amounts).

    They trade in sync because NDX is free-float cap weighted and DJX is price weighted. The spread gives exposure to BETA risk, i.e. it's a beta ratio spread as well as being a synthetic index -- tradable by taking long/short exposure in related index futures.

    You can replicate this exposure using options, but you will have to buy the synthetic (long/short ATM call/put in MES or SPY) & (short/long the ATM call/put in MYM or DIA)

    You may want to consider it since the risks are far lower than even outright index micro's, e.g. MNQ.
     
    #43     Nov 1, 2022
    Primal Trader likes this.
  4. cashclay

    cashclay

    cfds arent allowed for americans do you know of any cfd brokers that allow american citizens and residents to sign up?
     
    #44     Nov 4, 2022
  5. Overnight

    Overnight

    If you know CFDs are not allowed for Americans, why would you ask about CFD brokers for Americans?
     
    #45     Nov 4, 2022
  6. Oh yeah? And what were those options trading for at the time where brokerages literally told customers they could only sell and not buy?

    What was the premium you would have had to pay to do that above and beyond what it would have cost to just simply buy a stock? ( Except that you weren't allowed to buy due to apparent collusion between Melvin , citadel, dtcc and rh + others)

    In addition you have the issue of counterparties at a time when Thomas Petterffy said "We have come dangerously close to the collapse of the entire system,”
     
    #46     Nov 4, 2022
  7. destriero

    destriero


    I'm not a PDT plebe, but GL with it.
     
    #47     Nov 4, 2022
  8. I'm not sure what your problem is, but look at the IV on 1-27-2021.
    https://www.alphaquery.com/stock/GME/volatility-option-statistics/10-day/iv-mean

    Even "plebes" understand that means you're not going to be able to buy cheap options.

    Then there's also the issue that certain options trading was also shut down.
    https://www.fool.com/the-ascent/buying-stocks/articles/why-are-brokers-halting-gamestop-trading/

    Setting that aside:
    During a short squeeze, those getting squeezed are going to be desperate for actual shares of the stock on the day they have to deliver it. Some option that settles after they were supposed to deliver shares is not the same thing.

    In a short squeeze, you're not dealing with the fundamental valuation of the company any more. The existing betting around the stock has been so severe that covering those bets is expected to drive the price. The stock might only be worth $10 on a normal day, but on that particular day, they might have to pay $100 because to they need to convince enough people to sell shares to cover all the bets.
     
    #48     Nov 4, 2022
  9. destriero

    destriero


    Cool story, Bro. You may not know this but I am sort of a big deal.
     
    #49     Nov 4, 2022
  10. Overnight

    Overnight

    With that in mind, can you please change your avatar pic? Every time I see posts of yours I see that pic, and it makes me think you are licking a lollipop. (I know what it really is, a selfie with face blurred.) But gah! My OCD gets to me every time on this.

    How about a pic of a lion gutting a gazelle or something?
     
    #50     Nov 4, 2022