what happend to my account after PDT rules on stock options.

Discussion in 'Options' started by qdz, Nov 12, 2002.

  1. qdz


    (This is a reply to a message on IB forum, as their forum has ridiculous restriction that you cannot post 1.2K messages. I do not want to split my message. I also feel people here may be willing to listen to my story.
    Thank you.)

    Re: Mission Impossible,

    You are so arbitrary. You just want to apply what you think to others. First of all, you and I have different standard for a living. Do not give me you assumption as it does not suitable for me. What kind of living I want to make is my choice. Whether I can make MY living by trading less than 25K is my challenge.

    As for my account, let me give you my story on what had happened. Since I joined IB, I traded profitably for about 5% and 10% per month. And then this PDT rules on stock options suddenly came in in the option expiration week of October. My day trade counter was zero and I had positions with only time value. I SHOULD close them as I already feel what the change meant to me. However, I was not able to buy it back even on the next day. Because IB not only started to apply the rules but also started it at a point with old counter before any notification (even now) and to forbid opening positions on that week. Of course, ultimately it was my fault to take chance by not closing the positions. But that is because I was taken advantage by non-market factors. To make the story short, I lost all of my positions in less than a week. In court of morality, IB should take the full responsibility.

    When my day trade counter resumes, I thought I could get round. Again in a short story, I almost destroy the account because I had so many pin-and-kill cases. When I buy, it goes with me but I cannot sell. The next day, it drops either because of underlying movement, time decay, or volatility drop. When I cut loss, it goes with me but I cannot buy it back. The next day, it rocks. You see, how the rules affect the trading of options. I did not even use any margin. Of course I made mistakes of taking profit in winning trades too soon.

    You see, I am honest with you and give you a lot of hints (probably advice). And I do think your understanding and support for getting rid of this PDT rules (on stock options) is appreciated.

    Thank you.
  2. Q-Z

    My read on what the Fed & NASD were aiming at with this rule.

    Figure they were ;

    [1] Perhaps trying to get more commissions with larger [for some] margin rules,or perhaps encouraging more home improvement loans.:mad: At least with options you can limit risk;glad I paid all home loans off.

    [2]You were right to mention its your responsibility.:cool:

    Perhaps knowingly or unknowingly to help the brokers. Including multiple brokers [plural + ] with small minimum account requirements.:cool: Think & swim with that, since this is an educational only thread.{locations are part of diversifi cation}

    [3]Figure ''Markerserfer'' called it right with his ''think & swim''option broker. Don't know them but like ''serf'' . Figure also the Fed was hinting for a longer holding time for some or be super selective with day trades.
    Sometimes I take 20 days or more to move or write; I am created that way.

  3. qdz2


    That was my story of the year 2002. No mistake, some others made me miserable.

    Story of 2003 is that PDT rule will be no longer existing. And it is not my fault.


    By the way, I have become more bored and lazy to write such a long post like that.

  4. white17


    OK I'll bite once more. The way I am understanding your post you are saying that during expiration week in October, you had open option positions that IB would not allow you to close. Is that correct ??
  5. QDZ,

    Give it up already.

  6. qdz2


    Whatever you say, I am not going back.


    Alright, I give up. And you win. How about that?

  7. There is nothing for me to win ...
  8. QDZ, he is just giving you good advice, give it up already. Daytrading options and paying the full spread plus retail commissions is not the way to go. Your broker will make more than you will, especially since your returns are likey to be negative.
  9. qdz2


    Yes, I agree with you. Brokers never know how to be even just a little grateful.


  10. Thinkorswim's commissions for options are pretty good. But they're only better than OptionsXpress if you trade less than 5 contracts. No retail firm's commissions on options are better than IB.

    IB ticked us off three months ago by not informing us of the changes made to the rules, rules which they did not create. But that's in the past, and other than that IB is the best choice for my needs.
    #10     Jan 21, 2003