27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
One of the oldest financial adages tells us “time is money.” Perhaps in that spirit, the SEC is set to make sure stock and ETF investors needn’t wait so long to see the fruits of their trades finalized.
What’s Happening
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Starting Sept. 5, the settlement cycle for stocks and ETFs will reduce from three to two market days.
What It Means
Access to funds after selling stock, and delivery of shares after purchasing will now happen a day sooner than before.
Why It’s Happening
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Last changed in 1993, the SEC faced criticism that the three-day window was outdated, given the speed afforded by advances in technology.
Related Link: SEC Shortens Trade Settlement Period From 3 Days To 2
Hoping to enhance efficiency and expedite transactions for market participants, the SEC announced in March that it would reduce “T+3” as it was called, to “T+2.”
Why It Matters
For retail traders not allowed to trade on margin, using proceeds from a stock sale that hasn’t settled yet too often can be punished by a 90-day account restriction. During this time, their broker will not allow them to use funds from transactions until the settlement period has passed in its entirety.
While some brokers “freeze” customers’ accounts to keep them from incurring such a restriction, others do not, leaving the onus on traders.
The shortened settlement period should help reduce the threat of these restricitons and keep the stock market flush with plenty of sweet, precious liquidity.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.