Question about day trading options

Discussion in 'Options' started by rpr, Jan 22, 2006.

  1. rpr



    My question deals with being defined as a 'pattern day trader' and being subject to the minimum account balance of 25k rule.

    If I made a complete 'round trip' trade on 4 consecutive days, buying and selling a call or put option, would I then be subject to the rule mentioned above? Does that rule only apply to traders trading in a margin account? I will be staying cash only.

    Thank you for your time and help.
  2. i'm not 100% sure but i think ib enforces the day trading rules on options. i'm not sure with other brokers
  3. ChrisM


    Right. I have checked that myself with IB some time ago.
  4. rpr


    Right, options do count as the rule is for any security. Where i find the confusion is whether the rule is only applied to margin accounts only and not cash accounts.
  5. Both.