Do any of these examples, violate the pattern day rule? 1. Five SPY 1300 calls, are sold on Monday at 3pm. The next day at 11AM, all five SPY 1300 calls are bought back. (No day trades have been made, so were currently at zero daytrades) 2. Four SPY 1300 calls, are sold on Monday at 10AM. At 2PM the same day, three of the 1300 calls are bought back. The next day at 11AM, the remaining 1300 call is bought back. Since three day trades were completed on Monday, we need to wait to buy back the last call until the next day (The three daytrades on Monday, cause us to wait until the following Monday, to make a new daytrade) 3. One SPY 1300 call, One USO 35 call, One EBAY 40 call, One AA 14 call, and One UNG 9 call, are bought on a Monday at 1PM. The next day, each of them are sold at 2PM. (No daytrades have been made) 4. One SPY 1300 call, One USO 35 call, One EBAY 40 call, One AA 14 call, and One UNG 9 call, are bought on a Monday at 1PM. That same day, the SPY, USO, and EBAY call are sold. The following day, the AA and UNG call are sold at 2PM. (Three daytrades have accumulated causing us to have to wait until next Monday to daytrade)
The number of shares or contracts does not matter, you could buy ten, sell ten, on the same day, and that is one round trip. If you buy ten, sell nine, and then sell the last one, on the same day, that is two round trips.
I need to amend my original post. It should read like the following: Do any of these examples, violate the pattern day rule? 1. Four SPY 1300 calls, four USO 35 calls, four EBAY 40 calls, four AA 14 calls, and four UNG 9 calls, are bought on a Monday at 1PM. The next day, all four calls for each stock are sold at 2PM. (No daytrades have been made) 2. Four SPY 1300 calls, four USO 35 calls, four EBAY 40 calls, four AA 14 calls, and four UNG 9 calls, are bought on a Monday at 1PM. The same day, all four calls are sold on SPY, USO, and EBAY. The following day (Tuesday) at 1PM, all 4 calls are sold for AA and UNG. (Three daytrades have been made on Monday. AA and UNG, did not qualify as daytrades. A new daytrade, cannot be made until the following Monday) 3. Four SPY 1300 calls are bought on a Monday at 1PM. That same day, 3 of the calls are sold at 2PM. The remaining call is sold that day at 3PM. (One daytrade has been made) I appreciate the help.