PUT options liquidated at worst possible prices

Bob,

The important thing is at what time did you place the order, and what was the best bid available at that time. If even a hundreth of a second earlier, there does not seem to be a problem with the fill.

Brokers have a certain amount of time to report internalized trades, though I'm not sure what the rules are regarding time stamping of the fills - I know I get a ton of off-exchange fills in my tick data that seem out of sequence.

 

i know, i know..like i said-everything is legit..few milliseconds here,few milliseconds there..and you have pretty solid business..i'm not complaining..it's just an example..

 

Hi guys...this thread seemed dead already but I just want to highlight that recently IB did investigate my account and offered a small settlement so I guess I will still stick with IB....

 

It was nice of you to post the results of your complaint. I am glad you were compensated from IB. I use them and I was somewhat worry about your problem. Hopefully they also make corrections to their software.

Moscu

 

yah...i basically wrote off my loss after i posted on this thread back a few months ago but was quite surprised with the good will from IB. They certainly do listen to their customers but the process is just a bit too long.

 

How is it “extreme” to avoid the business stocks when witnessing current volatility and earning declines? If you “know” the stock market is, at best, unstable, should you not avoid it for a short time. Sure you may miss the beginning of the lauded rally, but at least you will not loose to another bear drop. Dollar cost averaging simply dilutes your losses in a bad investment.

 

Another method by which the holder of an option could realize accrued profit is by exercising the option. The decision to exercise an option lies only with the holder. If the decision is made to exercise, the following procedures are followed. For a put, the holder is assigned a short (sell) position in the futures market equal to the strike price. At the same time, the option grantor is assigned a " (buy) futures position at the same price. Then both positions are adjusted to reflect the current futures settlement price. It is rational to exercise a put option only when the market price is below the strike price so the holder's futures position will show a profit. The futures position of the grantor will show an equivalent loss. At this point, the option contract has been fulfilled and both parties are free to trade their futures contracts as they see fit.

 

I think it is better to just sell off the futures options? Time value will be lose if we exercise the option before it expires. Correct me if i m wrong?

 

That's ridiculous. More people should know about it.

 

Was this account at IB?

I have read conflicting comments on whether Portfolio Margin accounts are auto liquidated or given more time by IB. Can anyone shed more light on this topic?