Actually, my understanding varies from yours and if you read that link you posted closely I think you will agree that if you buy a stock on Monday with sufficient settled funds in your account, it is considered paid-in-full and settled Monday for your end of the transaction (but not for the seller's end since the cash takes 3 days to clear into his account). If you then buy another stock the same Monday, you are now trading with unsettled funds from the first sale which is why you must wait 3 days for the cash to clear into your account and your stock to be considered paid-in-full before you can sell that stock. This is actually silly nowadays anyway since trades can actually clear the same day in this computer age, however, the rules are the rules and have yet to be brought up-to-date (I suspect because someone is benefiting from this but I don't know who!).
But us options traders don't need to sweat that anyway, do we?
You know, to be honest, I never really thought about it because I have always had sufficient settled funds in my cash account and anyway, the cost of an option is miniscule compared to that of trading the stock itself. I really don't know if these rules apply to option purchase/sale trades, but I would suspect they do in cash accounts.
Newly
AI
