Actionable Trade-Alert
from Rick in the Trading Room
(Please check all related discussion in the room before you do any trades.)
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10:45 |
Day Trading & Margin (Rule 4210): Broker-dealers are no longer required to track trade counts or enforce the $25,000 minimum equity rule to designate someone as a Pattern Day Trader. Instead, the system uses modern “intraday margin standards” to ensure customers maintain equity that matches their market exposure throughout the trading day. Firms have a phase-in transition period to implement these standards. |
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10:51 |
Worst rule ever. Are you saying, no more pattern day-trading rule? If so, then my option strategies can be used by everyone in here, even thinly capitalized lurkers, since they rarely require more than $1,000 of buying power. |
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10:53 |
That’s what it will be. This just came out today. Will be phased in by each broker |
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11:00 |
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11:00 |
SPY 755 calls (see above) tripled, but they’ve only held their own against time decay for the last 30 minutes. SPY is buoyant but reluctant to break out and squeeze the 755s. It might have been different if the calls had traded down in no-man’s-land, below 0.15, but 0.37 was the lowest they traded. // Maybe I spoke too soon. SPY popped just as I was typing that last post. |
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11:04 |
Tradestation confirmed that they have already ditched the Pattern Day Trader rule, so you can now get by with just $2000 in an option account — more than enough unless naked-shorting puts/calls. Lurkers please note: Any one of the last dozen or so option trades I’ve posted in here would more than paid for your subscription. |
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