Hello again hivers,
I've come to an important decision in my trading life. I have decided to only trade 3 days a week.. on 0dte days.
dte is short for days for expiration. so a 0dte is simply when you open and close a trade on the same day. I used to also trade on 1dte.. meaning I would open (sell to open) an option (I always sell a spread.. which made up of at least 2 options) on a Tuesday for example, but it wouldn't expire until the next day. I even tried 1 contract of a 35dte Iron Condor (selling 2 options and buying 2 options), but that one got stopped out. (lost)
You can see on the options chain..
where you can choose which dte you want to trade.
Let me share with you another big factor in my decision. They have this rule in options trading called PDT. (pattern day trading)
Basically, if you have an account of less than $25k, then you must abide by PDT rules.. no more that 3 daytrades are allowed in any 5 day period.
So, if you do go over 3 daytrades, your account is basically frozen for 90 days.. only withdrawals and closing of trades is allowed.
One good thing that really helps me keep track of daytrades is this little counter on my broker's platform..
:)
