Every morning bell brings a shot at targeting hundreds in as little as 20 minutes!
Three things on my mind this morning — one trade I took, one rule that could change the game, and one “heads-up” I’m watching.
1) Target: I sold the $90 put
I like getting paid to wait.
On Target (TGT), I sold the Oct 17 $90 put and got a $2.07 credit.
That means I’m willing to own shares at an effective cost under $88 if I’m assigned.
Why there? Recent lows sit near $87–$88, and I’m fine owning discounted shares of a big box store with cash flow.
If price holds above $90, great — I keep the premium and don’t take the shares.
If it dips and I take the shares, I’ll look to sell covered calls for more income. Small size, strict rules.
Plain English: I got paid today for agreeing to buy a stock later at a price I like. If I don’t have to buy it, I still keep the money.
2) The PDT rule: this could get interesting
There talk that the Pattern Day Trader rule may be on the chopping block down the road.
Some background: The PDT rule says if you buy and sell the same stock in the same day more than 3 times in 5 business days in a margin account, you must keep at least $25,000 in the account.
If you don’t, your broker flags you and can freeze day trading for up to 90 days. That’s why smaller accounts often hit “three strikes” and have to stop doing those quick “in-and-out the same day” trades.
Nothing is official yet, and timing is fuzzy. If it changes, it means small accounts (those with less than $25,000) won’t be boxed out of active trading as much.
That sounds great — but here’s my caution: changes to rules often come with changes to buying power.
Less friction can also mean less cushion.
If and when this happens, read the fine print. Know what your broker lets you do, and what they can take away. Freedom cuts both ways.
Takeaway: Don’t plan trades you can’t size safely. If the rules loosen, keep your risk tight anyway.
3) Fannie Mae & Freddie Mac: just a watchlist note
I also heard chatter that Fannie Mae and Freddie Mac could try to come back with a large IPO.
They’re government-sponsored mortgage companies. They buy home loans from banks, bundle them, and sell them to investors.
That keeps money flowing to lenders and helps keep mortgage rates steadier. They were taken over by the government during the 2008 crisis.
An IPO would mean selling shares to the public again and could change how they’re run and funded
No opinion from me… yet — just wanted to mention it.
It’s just important to know that these two touch the backbone of the mortgage market. If they return, it could ripple into housing, lenders, and rates.
I’m watching headlines and if it becomes more than talk, I’ll go through it and report back.”
Bottom line: I’m not trading it yet. I’m listening and preparing.
Closing Thoughts
Sideways or trending, there’s always a way to play it if we stay disciplined.
I’ll keep calling out the setups I like, the rules that matter, and the stories that could move the tape.
Stay sharp,
— Geof
