08-12-2022, 10:38 PM
So let's get this straight,
<!-- SC_OFF --><div class="md"><p>I sell a call on a stock I own. The stock goes past my strike price on the call and now puts me in jeopardy of losing potential profits. I need to buy out the call while is still somewhat cheap and before it gets exercised, losing any gains past the strike price. In order to "protect" me, my broker and the laws on the books will mark me a pattern day trader prohibiting me from purchasing stock for 90 days if I do buy it out and my account is worth less than 25k. So if I'm getting this right, I get to lose money for my "protection" because my account is already low on funds.</p> <p>Any opinions on why the pattern day trading rule is a good thing?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Rdog9220"> /u/Rdog9220 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/wmtygj/so_lets_get_this_straight/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/wmtygj/so_lets_get_this_straight/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>I sell a call on a stock I own. The stock goes past my strike price on the call and now puts me in jeopardy of losing potential profits. I need to buy out the call while is still somewhat cheap and before it gets exercised, losing any gains past the strike price. In order to "protect" me, my broker and the laws on the books will mark me a pattern day trader prohibiting me from purchasing stock for 90 days if I do buy it out and my account is worth less than 25k. So if I'm getting this right, I get to lose money for my "protection" because my account is already low on funds.</p> <p>Any opinions on why the pattern day trading rule is a good thing?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Rdog9220"> /u/Rdog9220 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/wmtygj/so_lets_get_this_straight/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/wmtygj/so_lets_get_this_straight/">[comments]</a></span>