2 Responses to “can you trade options in a short period of time like the next day?”

1. kosmoistheman Says:
   July 18th, 2010 at 10:47 am

   Most online brokerage houses will require the funds to clear which only takes a day. If you sell the option today, you can use the proceeds tomorrow to make another trade. I use OptionsExpress. That’s how they do it. I’m sure most brokerages do the same. You can check your daily available balance to see how much is available. So to answer your question, yes, you can trade them the next day. Please vote for me as Best Answer if you like what you read. I’m competing with some friends for points.

2. manny c Says:
   July 18th, 2010 at 11:25 am

   Yes, again if we are speaking about stock options it is okay to turn them over in a short period of time. They are typically a short term high risk investment. The only thing you want to be careful of is not buying & selling the same option in the same day. If you do that it’s called a daytrade, it’s okay if you make a daytrade once or twice, but if you do it 4 times in a rolling 5 business day period (under NASD rule 2520 & NYSE rule 431) your account will be coded a daytrader account, and it will be subject to a minimum balance of $25k.

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