Understanding RAD options trade

Discussion in 'Order Execution' started by Mike Meadows, Jul 14, 2015.

  1. Appreciate any input, i am obviously new. I had a sell to close on 50 contracts of Rad executed this morning that I am not understanding. I have accumulated these over the last 6 months or so. These were the Jan 2016 calls with a strike price of $10. I put an high sell order until cancelled last night that executed this morning. See below:

    RAD JAN 15 2016 10.00 C- 09:30:05
    Sold to Close50c @ $8.77- Total: $43,779.60

    I had maybe 3 grand invested. I am a long time stock investor and a 1 year options investor. Forgive my ignorance but i am clueless how i made this much money.
     
  2. So you got them at 60 cents per contract then ?
    You must have purchased them when the stock was at 6.50 or lower.
    I find it hard to believe they moved up to over $8 as the underlying price is still 15% below the strike....and the underlying has moved up only $2 since you first committed.

    In looking at the CBOE quotes, it shows:
    RAD1615A10-E 0.55 +0.02 0.48 0.55 1 36401

    If that is the correct contract, your position is still under water.
    Note: the only contracts selling with that kind of premium are the 1.5 strikes.
    None of the 10 strikes are even close.
     

  3. Appreciate the responses, they being Scottrade retracted it all. How do these kind of mistakes happen?
     
  4. Likely had the wrong strike....they thought your position was in the 1.5 strike.