Good morning, traders…
Quite frankly, I’m shocked.
A mammoth-sized catalyst is forming behind the scenes…
And 99% of traders haven’t even noticed yet.
Rumor has it that the most controversial rule in trading could be history before New Year’s Eve.
Since its creation in 2001, the Pattern Day Trader (PDT) Rule has been one of the most brutal barriers for small account traders.
It limits you to 3 day trades every 5 days unless your account has $25,000 in it.
Once you hit that limit, you’re locked out until the rolling 5-day window resets.
If you’re trading a small account, you know exactly what I’m talking about.
You’ve probably watched perfect setups slip by because you were already at your day trade limit.
Or maybe you’ve held losing positions overnight when you should have cut them loose, just to avoid getting flagged.
But if the rule gets tossed out?
Everything changes.
No more being forced to hold bad trades overnight.
No more watching your account get restricted right when momentum is building.
No more playing defense when you should be playing offense.
We’re talking about millions of traders with smaller accounts finally being able to trade as much as they want. That’s an insane amount of money flowing into the markets.
More importantly, YOU can finally trade not just with the Smart Money, but like the Smart Money.
When the rule gets overturned, three major advantages open up.
This is the best Christmas present traders could ask for.
You Can Worry Less About Opportunity Cost
Under the current rules, small accounts are limited to 3 “round-trips” every 5 days.
That means you have to pick your spots carefully, which sounds good…
Until you realize you’re passing on fantastic setups just because you’ve already used your trade allowance for the week.
A perfect VWAP pullback appears on Wednesday. But you’ve already used 2 day trades on Monday…
Do you take it and burn your last trade? Or do you pass and watch it work without you?
Removing the PDT Rule means you can trade every setup that qualifies, not just the ones that fit your arbitrary weekly limit.
You Can Exit Quickly When You’re Wrong
You enter a trade.
Within 30 minutes, you realize it’s not gonna work.
The breakout starts fading immediately. Volume dries up. The chart cracks below key support.
You know you should exit immediately.
But you don’t want to waste 1 of your 3 weekly trades on a 15-minute mistake.
So you “hold and hope.”
The position gets worse. Now you’re down 45% on contracts you should’ve cut an hour ago.
That’s backward.
With the PDT Rule, exiting early burns a day trade. This forces some traders to hold longer than they should, hoping the position turns around.
Once the rule is overturned, the game changes.
Risk management gets easier because you can cut losses quickly without a penalty…
Which is exactly what you’re supposed to do.
You Can Use Tighter Stops
Small account traders often avoid tight stop losses because they don’t want to “waste” a day trade on a position that gets stopped out early.
So they widen their stops, take on more risk per trade, and end up losing more money when they’re wrong.
You buy calls for $2.50. The natural stop should be $2.00 (a 20% loss).
But you don’t want to use a day trade on a quick stop-out.
So you don’t set a stop at all…
The contract drops to $2.10, bounces briefly, then immediately tanks to $1.00.
Now you’re down 60% on the position because the PDT Rule forced you to take more risk than necessary.
Without the PDT Rule, you can set stops at the level that invalidates your thesis without worrying about burning through a set amount of trades.
REMEMBER: Flexibility Cuts Both Ways
I can’t overstate how meaningful these changes will be for small-account traders.
You’ll finally be able to manage risk how you want, not as the market dictates.
But flexibility cuts both ways.
Right now, the PDT Rule forces you to be selective. You can’t overtrade even if you want to.
When that governor gets removed, nothing stops you from taking 10, 20, or even 50 trades in a day.
Nothing stops you from revenge trading after a loss.
Nothing stops you from forcing setups that don’t meet your criteria.
You should practice discipline now while the rule still forces selectivity.
Like a soldier training for war…
That’s why I’m hosting a special 2-Day Options Bootcamp…
This is my LAST Bootcamp of 2025…
And your LAST CHANCE to learn my strategies before The PDT Rule disappears.
Prove that you can be selective even when you don’t have to be.
Keep a journal of every setup you pass on. Track whether it would’ve worked.
That way, you’ll know whether your opportunity cost is real or imagined.
When the rule falls, you’ll be able to weaponize the flexibility to your advantage.
Start with these 5 setups from my Smart Money Radar Watchlist…
TIGO Apr 17 $55 Calls
TIGO’s forming a clean bull pennant after a strong move from $45 to $56.
Consolidation is tight with a controlled pullback, now making higher lows.
Volume is tapering lower during the compression stage (exactly what you want before a breakout).
A move through the pennant downtrend (around $53) with volume confirms the next leg higher.
ZM Dec 19 $95 Calls
I’m watching for post-earnings continuation above $88. ZM held well after strong earnings and hasn’t faded the move, which shows buyers defending the report.
The chart carved out a stable base with shallow pullbacks and consistent higher lows. If price lifts and holds above the short-term resistance zone, the path toward the mid-90s opens up.
GOOGL Dec 19 $320 Calls
GOOGL’s digesting a big move and setting up for continuation.
Set alerts to enter these calls above $312.50.
The pullback has been orderly, with buyers stepping in consistently near that same support level.
A clean push back above the $318-$320 zone puts these $320 calls directly in play.
WING Dec 19 $310 Calls
Unusual flow and a wide base ready for breakout. WING built a multi-week base with clearly defined support and resistance.
Each test of the top shows less selling pressure, which means supply is thinning. Buyers stepped in at progressively higher lows, which signals accumulation.
A breakout over the top of the base could open a direct path toward the 300s.
INTC Dec 19 $43 Calls
INTC bounced cleanly off key support, now forming a higher low.
After reclaiming short-term trend levels, the chart shows steady, controlled buying instead of volatile spikes.
A break through the small shelf of resistance overhead creates a clear run toward $43.
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
