Cash Account vs. Margin Account For Options Trading | Avoid PDT Rule

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In this video, I'll be breaking down the key differences you need to know between a cash account & a margin account when it comes to trading options. We'll talk about how you can avoid the Pattern Day Trading Rule!
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#options #optionstrading #patterndaytrader

[@artrock8175]

Short, concise, and to the point! A great reference video to send to new traders who have questions regarding this pretty important topic! Thank you for posting this!

[@dinismall3940]

Great video content! Apologies for chiming in, I would love your thoughts. Have you researched - Genevi Sonadelyn Eradicator (probably on Google)? It is an awesome one of a kind guide for making money using this effective options system without the hard work. Ive heard some interesting things about it and my work buddy after a lifetime of fighting got astronomical success with it.

[@mr.vip317]

This is excellent information. I didn't know until last we that you can avoid the PDT rule if you use a cash account. I've been trading options for over here now, that's craaaazy.

[@bryanmcgill3317]

Thanks for the details, Vincent. Great clarity in what you walked us thru

[@iletz-lowetradeequities2020]

Thank you for sharing your pro moves. Enjoying your teaching style, humility and patience with which you speak. Opened separate cash and margin account on TDA.

[@supericio]

Nice and clear video as usual Vince!

[@benreynolds18]

Good to know man appreciate it. Glad to have just joined the discord

[@ducus2318]

Supporting your Chanel with providing useful knowledge for all people !

[@triplebribs4975]

Vince I have recently joined the discord because I love how transparent and open you are. It is well worth the money. You've responded to me a few times and it's so helpful to have an experienced trader to learn from and look up to. Please keep up the good work, I appreciate everything you do for your discord and KZbin community.

[@pete2169nv]

Just when I was looking into the switch. Thanks for the quick breakdown explanation on both accounts Vince.

[@aaronj095]

Yyyyyyyyyyyyyymi&8:/545:

[@hadassah22]

Thank you for breaking it down for beginners like me.

[@jamiebrown6194]

Really helpful and well explained! Thanks a lot

[@thiskcy1]

Found what I needed! This is gold!

[@Pantomath.]

Excellently done. Good explanation. New subscriber. Watching from Canada. 🇨🇦

[@buildearlyandtradingcorp.]

So happy with your inputs! Thank you.

[@jessegardona4639]

good video, great job Vincent

[@NicoleByron]

this was awesome! thank you V

[@brandonhuedepohl6367]

Great video like always!

[@rohithbellapuk]

Thank you bro, exactly what I was looking for. Good luck in the casino!

[@shannonalanna9538]

Great explanation, thanks!

[@SuperRapstar1]

Very HELPFUL! THANKS A LOT!

[@ducus2318]

Thank buddy! Very informative

[@ruslanagaev9372]

I was looking for this answers. Thanks bro 😎

[@vikramrout7395]

Finally !! Thank You for this.

[@dlaa3832]

Great info. Thank you

[@abronxtale]

Highly underrated and good info

[@jo6048584]

Perfect video. Just started trading with an experienced buddy. Only been able to make 5 trades and hit on 4 of them. Gotta make more!

[@gnarlyartstudio]

Thanks for the info. So are the funds that settle next day available before market open or is it like 24hrs from the time of sale?

[@Siegefya]

You can do cash secured puts with a cash account as well. You can do the full wheel strategy.

[@nfriend9783]

Helpful video..thank

[@Moneymaking_SPG]

Great video thanks

[@410nikko6]

Great Video...thnx Much

[@fastcache]

Thank you sir!

[@jasonking6892]

Excellent video👍🇬🇧

[@AlternativeLine]

I learned everything about options within 3months and didnt know i needed a god damn margin account to trade every strategy, i though margin has stupid ammount of fees each trade 5-7% but i was wrong ty for explaining.

[@adolfoorantes3690]

Hey man! I just got started in all this and i don’t know to get a margin account since im a beginner (and level 1 option trader) any advice?

[@Parachi]

what is the way to get rid of the margin that i have already on the stocks that i bought, thanks

[@millionairetune]

I’m just starting to learn this.. with a cash account will I be able to do swing trades?

[@austintube]

after you bought option contract with the cash account, how can you exit if you can't sell option contract?

[@MrFreedomforyou]

Great video

[@drehsanhabib2177]

Excellent ,

[@greenlifegardenhomediy3414]

Just what I wanted to know. Thank you!

[@SimonSozzi7258]

Have the rules changed on RH? I'm level 3 but not Gold. Below the "PTD Protection" switch which locks 🔐 the 4th trading day, there's a link to "turn off instant settlement."

[@Nikola83ify]

What about poor man's covered calls (LEAPS + covered calls)? Can I do that on a cash account?

[@christophercourtemanche1945]

Bro they got this video hidden. I just figured this out today and decided to search for confirmation. I swear I've looked for this time and time again and no one had any clear info or said no and then today I learned it first hand and I find this

[@SH-jv5uf]

Will Tasty Works allow me to trade strangles (buy calls/buy puts only) in a cash account?

[@islandboy1506]

@vincentDesiano , with a cash account , can you not sell calls and sell puts

[@Numb2Fear]

If buy a option and sell it the next day can I use the profit from that to buy another option that day or do I have to wait until the next day

[@vqfive]

But is the profit that you made off that trade also available immediately in a margin account?

[@mhlemon1993]

Hi how are I have question please If anybody E*TRADE account has more than 25k how many trades he can do one day is there any restriction for that ?

[@Whatsleep]

So with stocks you can't enter into a short unless you have a margin account with over 25k in it correct?

[@YoMamaBoyfriend007]

So where in TOS can you change it to a cash acct?

[@jrelechrelech6898]

How do we pay the margin? If I have 20k on margin and I only use 2k from it, do I only pay for the 2k plus interest?

[@preetkaurshergill8334]

Can I trade unlimited options in Robinhood cash accounts with settlement funds ?

[@trustmebrother]

I like your videos cause you go straight on points. I am 100% agreed at 7:30 I ran into this many times.

[@trustmebrother]

@@Andrew-bb6it NJ

[@MiguelGarcia-vj7ju]

Today my TOS margin account went under 25k and I was requested to deposit more funds, so I have been thinking if I switch to cash, but not sure if I can trade options the same day buy/sell, understanding that this will settle next bussines day...

[@blueloo1513]

Very good

[@Livesuncut]

So you can’t do a put spread on a cash account

[@itsterri8520]

I have 2 accounts with webull. One with cash and one with margin.

[@RedTheLegendUH82Luv]

You can most definitely trade options on robinhood with a cash acct... like definitely 💯

[@VincentDesiano]

This video is years old, they just recently implemented the cash account feature

[@lularuelle2297]

What are the option?

[@justinsigh6869]

So if I have 5,000$ in my margin account that would mean I have 25,000$ margin which would mean I can trade with no pdt rule as many times a day as I want?

[@christisgodd]

Can you use cash account to buy IPO

[@buhumal]

Is it 3 or 4 trades per week?

[@aztradescrypto]

I have a cash account with interactive brokers, if my account size is over 25K, do i still have to conform to the settlement period? because its annoying to wait +2 days to be able to trade again! if im over 25K, will that take this pain away?

[@r.a.m.5933]

I've read that you can downgrade your robinhood account to become a cash account. Is that correct ? Or am I missing some information ?

[@juancamilorico700]

Can u buy puts with a cash account?

[@samchahal9869]

Anybody Can explain the $25000 Rule… it should be in cash in your brokerage account or overall of your account to avoid PDT? I have margin account.

[@tannerlavanture6489]

what broker allows you to day trade options with a cash account while not being under PDT rule?

[@SlippyJimmy123]

In my knowledge PDT applies only for margin accounts

[@lakshitlohat572]

Nice..video..👍👍 Did this PDT rule applied on International clients ..Traders living out of USA.. Reply in same.. Tc..

[@michaelpenknife3921]

It doesn't matter where you live, it matters with whom you trade. If you trade with a US based broker, PDT rule will apply. If you trade with a broker that is not based in the US, PDT rule will not apply.

[@JoJo-dh4xg]

The 3 trades only applies to buying right? What if I have 12 existing option positions, can I sell all even if I have made 3 buys and 3sells?

[@justintanner246]

PTD rule is when you buy a stock and sell that stock within the same day. It don't matter how many times you sell. For an example: I buy into 3 different options and sell the same options on Monday, but I've got 8 options I was holding over the weekend, I am able to sell them all because I got them Friday. A swing trade is holding overnight or say a few days and or weeks which you can do however much you want. So if I buy a stock today I can sell them tomorrow without any problems, considered a swing.

[@kidshaw]

can you do a video on Naked Options vs Covered Options?

[@andrewmyers3520]

Video starts at 1:31

[@zahidbutt8252]

Hi Vincent I joined you guys as Premium Member, I don't see the way to ask a question on discord, so please give me blunt Answer, If my account is over $25000 the Margin account should be beneficial >> Right ??? Thanks

[@dave1142]

I don’t know how, but you’ve been able to package an unbiased analysis that is more educating than the normal, thank you for your effort to be the signal and not the noise, I had to get an expert, Sir Eric Arlo to manage my trades in Options, Futures and crypto as I lack the knowledge and skills to make good trades, my account has been growing up to 7- 15 % weekly depending on market conditions and this is the sixth month for me

[@isaiah8332]

It's important to note that trading can be complex and involves substantial risk. It requires a good understanding of the underlying markets, analysis of supply and demand factors, and careful monitoring of price movements.

[@olivia4182]

Hi there, what if I will like to give it a try with your pro, since you are familiar with how this works maybe you can link me to him

[@dave1142]

Arloeric1 @

[@dave1142]

That is his Gmail above so you can reach him okau

[@olivia4182]

Okay, thanks I have mailed him right now

[@alejandrofrancoo5002]

You made an example for a 5k portfolio investing 1k and getting the same 1k as instant available balance after you sell , but what if you invest the entire 5k in one stock and you sell it the same day, am i going to have the 5k as instant available balance? or is it limited to just 1k and i have to wait for the other 4k to settle?

[@missnieves7269]

No

[@darkxgamesyt206]

Can i buy calls and puts In cash account?

[@lucasm6890]

yes, but no spreads

[@superlinksx]

in a cash account you say you can only buy calls and buy puts .. but of course to close those calls and puts while scalping you have to be able to sell them as well correct? (i know this probably is kind of obvious but please clarify)

[@InfinitelyManic]

With a cash account you can generally only buy and sell cash secured puts and covered calls.

[@tanishamason1319]

How can i get approved for a "Standard cash account" ? I keep getting approved for the wrong type. i was approved for a covered option trading account, then approved for a margin account

[@LikeableFiggas]

My exact ? Also I'm trying to switch from a margin account to a cash account cud 3trades a week isn't enough at all.....

[@Brandonleetrader]

I like the intro…

[@notagudgamer5436]

if i open a spread with 0dte and it expires worthless does that count as a day trade?

[@iyasubenjamin6301]

Can you do spreads on a cash account

[@josephsaeteurn9158]

i have cash account and i can do all the options such as buy, sell, spreads, etc. is this video out dated?

[@johnybravo5667]

Is your broker regulated?

[@anon003]

What does happen in a Cash Account when an ITM Put is automatically exercised but you do not own the underlying asset? (No short position possible because it's a cash account and not a margin account)

[@MaxDaBeast29]

GOAT 🐐

[@blackeshblacktillwhitishwh5541]

I'm not really understand the language if you could give more graphic will help. Best regards.

[@kingfran8758]

In cash account- if I start with 500 and spend the whole 500 on a stock and collect all profit. Can I still trade the 500 again without the profit i collected, the same day. Basically can I trade my whole account multiple times in a day?

[@jokerhere4504]

I’m curious about this too, I’ve heard you can do multiple but I’m hearing conflicting information

[@jokerhere4504]

Hey so I may have an answer for it actually after doing some digging so apparently you can’t do that, so it’d be wise to use a small percentage of your account when you trade

[@kingfran8758]

@@jokerhere4504 thank you!!!

[@VincentDesiano]

No, you can only use the $500 buying power per day. What you described above is called a good faith violation. What Joker explained is correct.

[@kingfran8758]

@@VincentDesiano thank you for the confirmation!! It means a lot.

[@Nikola83ify]

Thanks for the video. What about cash covered calls on a cash account? Can I still take a premium if I have enough cash to cover the whole position?

[@Nikola83ify]

I've just found the answer bellow. :)

[@angelhuerta6037]

@@Nikola83ify what was it

[@Faraz70]

If I don't use margin in an margin account, do I still have to pay interest on it?

[@VincentDesiano]

No sir. Only the margin you use & don't pay back if you lose it.

[@Kaizen_Trading]

can you trade spreads in a cash account on the SPX?

[@remodelingjob]

No you can't trade any spreads.

[@brewdog8568]

You can now time for an update video 🙌

[@alexlloyd2154]

Do what eigtb away what go worng place custom suoorot minors whine

[@gandalfearth5336]

One doubt. With a cash account you can buy a put of a stock without having any share of this stock? I guess there are some strategies with options that you can not do with a cash account in comparison with a margin account. Hope you can clarify me this doubt. Thanks in advance!

[@VincentDesiano]

Yes you can buy a put on a cash account.

[@gandalfearth5336]

@@VincentDesiano Thanks a lot for the feedback and fast answer. Subscribed!

[@sachinpatil7235]

@@VincentDesiano can we do that on robinhood ??

[@abofinance998]

Boss 👏

[@LaCatHTF]

Can you still trade options on a cash account?

[@youknthetruth1703]

No one is answering this question

[@VincentDesiano]

Yes you can trade options on a cash account

[@partyfavors9238]

Cash for me is better because I am novice and I just want to take it slow

[@Haguewood]

So can I trade options on a cash account ?

[@silive4067]

Yes

[@midnighttoker2588]

So I can day trade unlimited options with a cash account on Webull?

[@VincentDesiano]

Yes, but you can only trade the amount you have settled

[@midnighttoker2588]

@@VincentDesiano thank you brother 🙏

[@BrokenStatues7]

I have a cash account > 25k on robinhood and I’ve been trading options. I have not seen a restriction 👀

[@darkxgamesyt206]

So you have a cash account and able to trade options on robinhood? I would like to do the same.. Do you have to wait 2 days for money to clear?

[@VincentDesiano]

You can still trade options! Expect you are under PDT restrictions.

[@charlierob5659]

This has changed all you have to do is email them and they will change your account to cash

[@ProdLeo]

I LOVE YOU

[@irajlamar]

So if I have $25k and over in margin account. I can scalp 100 times per day if I want?

[@jmballin4897]

Yes

[@jmballin4897]

Anything over 25k allows you to day as many trades as you want

[@applepumpkins75]

Guys...AND GIRLS. Thanks.

[@Nktrading1]

Matt Diamond brought me here. 💙

[@VincentDesiano]

Matt is the man!

[@Nktrading1]

@@VincentDesiano quick question, with a cash account what if I trade one option contract and it was a loss , will the negative funds be counted as unsettled funds? There’s where I’m confused.

[@VincentDesiano]

Say you have 1,000. You buy 1 contract for $200. Your remaining funds are $800. Regardless of profit or losses.