I am currently preparing a Private Letter Ruling regarding income of a trader of options, futures and other short term stock gains as being viable compensation for pension purposes. Any information that you have to that effect would be greatly appreciated.

Does the trader file a Schedule C or receive W-2 income? Could the trader perform his service for more than one company or does he operate his/her own trade or business for profit? If the trader is operating a trade or business and is not an employee of some other entity it would appear that he/she has earned income under IRC 401©. Why do you think that the individual doesn't qualify for a SEP/QP?

This doesn't sound, on the face of it, as "Earned Income".