Coco - Omg!!

The general rule is to buy, but do not exit your position until after the exchange clarifies the situation as to which orders, if any, will be busted.

Normally, any competent and professional exchange will make a decision on what trades to bust *before* reopening for trading. It is critical to market integrity that, once trading is reopened, there is confidence that all trades will stand.

In this case, with Nasdaq deciding to bust trades *after* the stock was reopened, they have shown themselves to be an incompetent and unprofessional exchange, IMHO. A futures exchange like Eurex or the CME would never do that.

Fwiw, my trades took place after the bustout time period, so I do not have any sour grapes behind my comments.

To reduce your "exchange incompetence" risk, you can hold into the close, or buy put options, thus converting your long stock into a long call position. This way you can maintain the upside, without risking nearly so much on the downside.

 

According to Bloomberg, only trades between 10:46 and 10:58:08 am New York Time will be busted.

So if you bought on ARCA after that, you *should* be ok.

Fingers crossed

 

"In this case, with Nasdaq deciding to bust trades *after* the stock was reopened, they have shown themselves to be an incompetent and unprofessional exchange, IMHO. A futures exchange like Eurex or the CME would never do that."


exactly. i dont remember this ever happening before.

 

That's a very good point.

 

To all posters:
I know your posts relate to the problems with COCO and the NAZ busting trades, but if you take a moment look at the other stocks in the sector ESI, Univ of Phoenix, ITT, etc you may see that there is an opportunity there. They have all been hit hard. I can't believe they all are having the same problem. I am going to buy some shares for a position trade. Sorry about the COCO problem boys & girls, but I am going to look to make some lemonade here.
Good luck, Steve46

 

Yeah, let´s buy CECO now !

Everyone and his dog already sold at $31.50,

now this thing might go UP ... UP ... AND AWAY !

 

Wrong. Anyone selling after 10:42 EST had their trades broken.

 

Dammit, I don't know if I'm short, flat or what. I keep getting updates from IB that the quantity of my position has changed. One minute I'm up $3,300, then I'm up $2,000. Now I think I might be down $500. F*ck!

 

Same here, the orders are slowly being taken out. They used to call you before when they busted trades.

I guess no longer.

 

You're kidding me - they don't even call when a trade is busted? What if someone bought and then went out for lunch or something?