Option Millionaires

[21stcenturytrader]

hey this is exactly what i thought..but i have confirmed with etrade just now and they say that regardless of cash or margin account any 4 round trips within 5 business days is considered as a pattern day trader and gave me this link.

https://us.etrade.com/e/t/estation/help?id=1307030000#Know2

I am beyond cofused..

"Learn about FINRA Rule 2520 and NYSE Rule 431 Day trading is the practice of opening and closing an equity or option position (i.e., buying and selling the same stock or option) on the same trading day. A same-day buy and sell, or a same-day sell short and buy to cover, is considered a day trade.

If you make four or more day trades in a rolling five-trading-day period, you will be considered a pattern day trader under these rules. However, if the day trading activity does not exceed six percent of your total trading activity for the five-day period in question, your account may not be designated a pattern day trading account.

If you meet the definition of a pattern day trader, you'll be required to maintain $25,000 equity in your brokerage account at all times. If your account equity falls below $25,000, a day trading minimum equity call will be issued on your account requiring you to deposit additional funds or securities.

In order to meet the $25,000 requirement, your pattern day trade account will earn credit interest on the free credit balance.

As a pattern day trader, you'll be granted day trading purchasing power up to four times your NYSE margin excess.

Pattern day trading status only applies to customers with margin accounts. The day trading rules apply only to the buying and selling of the same stocks or options on the same trading day. They do not pertain to mutual fund or bond trades and are not applicable to positions held overnight or longer.

Note:
Per NYSE Rule 431, stock transactions in cash and retirement accounts are subject to T+3 settlement. In other words, if you sell shares of stock held in your account, you may not use the proceeds to purchase another security until three market days after the trade (the settlement date of the sale). Options trades are subject to T+1 settlement."