Insane TSLA weekly option fill, busted

Discussion in 'Options' started by tb123, Aug 8, 2018.

  1. d08

    d08

    Nice but firm. Just being nice gets you nowhere.
     
    #21     Aug 9, 2018
    tb123 and vanzandt like this.
  2. tb123

    tb123

    Thanks! Hope it works, still waiting for a call back from TD Direct Investing help supervisor!
     
    #22     Aug 9, 2018
  3. vanzandt

    vanzandt

    There's no doubt that when trading resumed, that call would have been worth at least $12. You couldn't close it because it had "already been closed". They need to at least value your call north of the $5 you paid and come off with some serious comps imo. I mean you have a right to be pissed imo.
     
    #23     Aug 9, 2018
    tb123 likes this.
  4. tb123

    tb123

    They offered me 200 hundred US as a gesture of good will to call it case closed. I said im down 577 pretty much right now, i would like the procedure reviewed and at least 60 days of free trades, they said no can do. Was told by TD that i can have them review the calls of what i was told etc, and then decide told them to do that. Damn, lesson learned
     
    #24     Aug 9, 2018
  5. FSU

    FSU

    You're not really "down" $577 because of them. The bust was legitimate and not their fault. The question was when they informed you of it and where you could have exited the call when you found out vs where you could have exited it if you knew before the opening. $200 sounds reasonable to me.
     
    #25     Aug 9, 2018
    d08 likes this.
  6. tb123

    tb123

    Thanks FSU
    They are going to review the calls and check if they followed their own procedures effectively. Maybe can squeeze them for a bit more, but if not will take the 200.
     
    #26     Aug 9, 2018
  7. d08

    d08

    Agree. IB would give you nothing in this scenario, most likely.
     
    #27     Aug 9, 2018
  8. sprstpd

    sprstpd

    If you get a fill like that, you never know what your true market position is until after the fact. There are rules for busting trades and one of them is that the bust request has to be filed within a certain amount of time (usually less than an hour). Theoretically you can wait an hour and then call your broker and ask if the trade has been busted. But there are always exceptions for busts when the price is so far away from the market as to be ridiculous. Those types of trades can sometimes be busted far past the normal time window.

    In the future, you have to assume your fill would be busted sometime in the future (because of the ridiculous price) and then sell one more contract in anticipation of the first one being busted (while the prices on the options were still high). Then when the first sell gets busted, you'll be flat with a profit. And if the first sell does not get busted, you'll get a windfall profit on that contract and some other residual profit/loss on the second sold contract. So either way you have some protection.
     
    #28     Aug 10, 2018