Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Editor's Note: The government's next "Pivot Point" event is coming up. So we're bringing back legendary investor JC Parets to show traders how to target gains as high as 2,000% within weeks. We invited thousands of readers to an emergency summit in May where JC warned against mainstream market crash narratives. If you were one of the 1% who listened – you could have seen 14 opportunities to double your money over the past five months. Click here to see what JC has planned for next week. - Ryan Fitzwater, Publisher
Dear Reader, Short-term option trading is about to shift into high gear. Last month, FINRA's Board of Governors approved amendments to replace the current Pattern Day Trading (PDT) rule. If you're unfamiliar, the PDT rule was created in 2001 during the dot-com boom to protect retail investors from excessive risk. Under PDT limits, traders could only make three day trades per week if their account balance was under $25,000. But this latest regulation will do away with that three-day limitation once it's finalized. Without the PDT rule, millions of small accounts will flood option contracts without restrictions. Imagine the retail flow with unlimited traders participating. The spikes will come faster and sharper - and the profit opportunities will be greater than ever before. For someone like me who thrives on short-term trading opportunities, this is music to my ears. Now, FINRA has asked for public comment on proposals under Regulatory Notice 24-13. After that phase, the rule changes will be formally submitted to the SEC under Section 19(b) of the Securities and Exchange Act. The SEC review process can take months... so we're looking at late 2025 or early 2026 before the PDT rule is completely dismantled. But once that happens, individual traders will gain access to a powerful tool: daily options, also known as 0DTE trades. You Have Options 0DTE stands for "zero days to expiration." Think of them like lottery tickets that are valid just until the end of the day. Here's an example of how a 0DTE trade works... You buy a call (bet that a stock will go up) on the SPY index at $1 for $100. If the SPY rips higher in the next 30 minutes, your option could double. So your $1 option is now worth $2. But if the SPY drifts or drops, your call option could go to $0 fast – sometimes in under 10 minutes. You can also buy a put option (a bet that a stock will go down) and generate a profit if the SPY drops. 0DTEs let traders play short bursts of volatility. |
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