Assuming an account of less than $25,000 can someone tell me why you can't make more than 3 day trades in a 5 day period but you can get approved to sell naked calls or use margin?
Was there some ruling that set a precedent? I can't think of a good reason why the PDT rule exists given these other scenarios also exist. Surely it can't be to “protect the trader” because I mean…come on, there is nothing inherently dangerous about a day trade, but selling naked calls could get pretty hairy, margin as well. Doesn't make sense to me.
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