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♟ What the PDT Rule Change Means for Short-Term Trades

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"Without the PDT rule, small account traders now have a chance to capture fast and potentially major gains."

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



Bryan Bottarelli

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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Back in 2022, the CBOE expanded SPX 0DTE options trades availability from three days a week to five days a week.

The result? Some 60% of all SPX option volume now consists of 0DTE trades.

0DTE options are popular for one simple reason...

They offer low-cost opportunities to hit fast, massive returns.

0DTE options tend to have lower premiums, which can make them less expensive vehicles for taking positions on short-term volatility.

If you're quick enough - you can make a lot of money fast.

When the PDT rule goes away - there will be more opportunities to trade 0DTEs... and for faster gains than ever.

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YOUR ACTION PLAN

Dismantling the PDT rule could lead to a whole new level of short-term buy opportunities for traders of all levels.

Combined with my 0DTE options strategy, you'll have the chance to make massive gains fast - but they come with risk and there's a WRONG way to trade them.

Click here to see how I trade 0DTEs in a way that puts the odds in my favor.

P.S. Next week legendary investor JC Parets is going to show readers his process for playing major volatile moments in the stock market.

JC joined us back in May to reveal his strategy for playing market pivots, and next week he's revealing how traders can target returns as high as 2,000% within weeks during the government's next mandated "Pivot Point" on October 9.

Click here to sign up for JC's Pivot Point Zero Hour today.


FUN FACT FRIDAY

During the 2013 U.S. government shutdown, which lasted 16 days, many national parks were officially closed due to lack of funding for staff. However, some parks, like the Grand Canyon, saw local communities and states step in to reopen them. Arizona used state and private funds to temporarily operate the park, highlighting how shutdowns can spark creative solutions.

This also revealed a quirky side effect: with reduced oversight, some visitors ignored rules, leading to unusual incidents like people attempting to "pet" wild animals or trespass in restricted areas. Shutdowns, while disruptive, can thus create unique moments of local initiative and unexpected public behavior, showing how communities adapt when federal operations pause.


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