So I profited 820 dollars on a deep ITM options spread and received this email from Tastytrade

Discussion in 'Options' started by Con1991, Apr 22, 2024.

  1. poopy

    poopy

    Now we're trading dealer-forex?

    Moron, that's a bucket shop. A dealer market. It's distinct from an agency broker who is not involved as your counter-party. TT holds your money at their clearing firm and sends your trades through risk and then to the exchanges.
     
    #41     Apr 23, 2024
    VPhantom, nbbo and newwurldmn like this.
  2. let the grown-ups talk boy, I understand that you are in your puberty and need to handle some hormones, but we are trying to get to the point of why Tastytrade complained about that trade.
     
    #42     Apr 23, 2024
    Con1991 likes this.
  3. newwurldmn

    newwurldmn

    completely different type of broker.
     
    #43     Apr 23, 2024
    VPhantom likes this.
  4. poopy

    poopy

    You've been spoon fed. The answers are here.
     
    #44     Apr 23, 2024
  5. When we apply logic to sentences, the devil is in the details. now that we agree that some brokers take the other side of your trade.

    For the third time:

    Why is OP allowed to trade then?
    Shouldn't that trade have been blocked in the first place if it was against the broker's policy?

    I am happy to accept that is just a software failure and that they didn't handle that workflow exception in their business model, but we need an explanation and you seem to have all of them.
     
    #45     Apr 23, 2024
    marvinrobo7 likes this.
  6. newwurldmn

    newwurldmn

    I don’t know if that broker can prevent the infinite combinations of deep in the money strategies that the OP could have done with the same risk.

    My broker would allow me to put the trade on but there is no situation where I would be a settlement or margin risk at 5 contracts. At a million, I would.

     
    #46     Apr 23, 2024
    marvinrobo7 likes this.
  7. poopy

    poopy


    IBKR has a multiplier. 30 or 60X?
     
    #47     Apr 23, 2024
    marvinrobo7 likes this.
  8. newwurldmn

    newwurldmn

    Awesome, you applied logic to a sentence and won a pedantic argument that some brokers take the other side. Tasty trade doesn’t so you point is now extra stupid.
     
    Last edited: Apr 23, 2024
    #48     Apr 23, 2024
    VPhantom and poopy like this.
  9. poopy

    poopy

    He's not. He was put on closing-only.

    It's not a software failure. Chris at TT is not a bot. He implied that the trade is stupid due to fees associated with expiration. There is a suitable alternative that is superior and does not incur additional fees associated with expiring ITM.

    Nobody cares what you expect..
     
    Last edited: Apr 23, 2024
    #49     Apr 23, 2024

  10. You missed the point entirely, I appreciate your knowledge in the matter, I really do.
    I am asking the question because I am trying to understand why TastyTrade would complain about the trade.

    I have an account with them and I was planning to move my executions from Interactive Brokers to their platform. Now if I understand that they didn't check the input of the trade properly and that was against their policy, I am more than happy to accept that is just a software error, fair enough.

    But if they allow that trade in the first place and then they complain about it, all sorts of conspiracy paranoias come up. And as a future client, these things don't play well.

    You seem to be taking it as a personal argument, it is not like that.
     
    #50     Apr 23, 2024
    marvinrobo7 likes this.