I think I made an error in an order

Discussion in 'Options' started by marc82much, Jul 2, 2020.

  1. Due to some poor decisions on my part yesterday, I am now on notice that I may be a PDT. Now today, I was attempting to enter a Bull Call Spread in ADM. Stock is at $39.75 and I BTO 40 Call and STO 41 Call (17 JULY - 15 days out). Did I get this backward? Pretty sure I did. Can't buy my way out of it until tomorrow, lest I piss of the PDT gods. Question: Is there a name for what I ended up with? The confirm box on TOS said with a .40 debit, the max loss is $200 and the max gain is $300. I guess I will ride it out til tomorrow to see what happens.
     
  2. guru

    guru


    Looks like you did get your bull call spread (aka vertical spread). I don’t see anything wrong here if you indeed bought 40 Call and sold 41 Call.
    (keep in mind the market is closed tomorrow)
     
    tommcginnis likes this.
  3. interdim

    interdim

    If I recognize I made a poor decision or a mistake I get out immediately. I don't wait, and that rule has served me well over the years.
     
  4. SunTrader

    SunTrader

    Like interdim said. And I'd get moving.

    "Can't buy my way out of it until tomorrow,...."

    Monday. Tomorrow markets are closed.
     
  5. Of course, thanks.
     
  6. You are allowed 3 PDT strikes in five business days. You are penalized on the 4th.
     
  7. Yep, used three yesterday.
     
  8. I don't know who your broker is, but IB allows for a PDT 'reset' once every 180 days. Basically, if your account is coded as PDT, and you violate the rules (e.g., by being <$25k), you can ask to remove the PDT flag and continue (non-day) trading.
     
  9. taowave

    taowave

    Fwiw,you bought a 5 lot