I had a buy limit order @ 13.60 in TASR 110 May puts. Order was filled. I sold @ 15.90. Now about 2 hours later ISE is telling me that my buy order is busted. Of course, puts are much higher now. They are @ 21.00 now. IMHO ISE is not acting fair. This isn't a fair game. IMHO a local was triggering my order and then he told the exchange to bust it after it went in his favor. During the time of the filling of my order the current bid with smart order tool from IB was about 14.40. Why didn't a seller hit this order? IMHO some local steals my money and ISE is accepting that. Has anyone experience with such a thing? What can I do? I don't want this criminal to walk away with my hard earned bucks.
IB is telling me that my order was filled out of the volatility range. The whole action stinks. Have you experience with such an event, dgabriel? I'm really pissed.
I use Fidelity for my option orders. They have never busted an order, but once an order was executed outside the bid/ask range ... not in my favor. I called customer service to ask about it. Their answer was kinda flaky, but plausible. However, upon receiving the confirmation statement, the price had been adjusted ... in my favor. I don't know if my call made the difference, but it probably didn't hurt.
I would not accept that response. I would ask to see this policy was in place in advance and that it is executed upon 100% of the time. If it is not then there is no way I would take a bath on that kind of ruling if you are talking about significant money. Demand discovery as part of an arbitration procedure. If they blame the exchange make the exchange produce. How can they be computerized and allow trades to be broken. The other issue is that you were not notified in a timely manner.
I have experience with busts on equities (not options). Generally it is out of your control and IB's control whether a particular trade gets busted or not (at least it is for equities). However, if IB seems to just accept the bust without arguing your case, then I would at least send an e-mail to ibmgmt@interactivebrokers.com explaining the whole scenario. Sounds pretty bogus to me. I've had similar things happen to myself and in the end all I can do is take the call, get reamed, complain to the bearer of bad news, hang up the telephone, and then stomp around in a bad mood for the next few hours. It helps to have a punching bag. If exchanges upheld their erroneous execution policies to the letter, then maybe you would have a fighting chance. However, it has been my experience that the busting process is a scam.
They called you two hours later? That is ridiculous. All bust filings must be made in a timely manner (not 2 hours later). If it is a substantial amount of money, you should go to arbitration over it.
Oh Shiite! You're short those puts from 15.90 now? Sux. I've had plenty of stock trade busts and they are a pain in the butt. I think it is only fair that the exchange nullifies BOTH sides of the trade! Sure, that would mean someone else gets their trade busted too, but it's not your fault. That's one case where some SEC rule change/meddling would make sense. And what the hell is a bust all about anyway? If I enter an order wrong I expect to eat the loss. I never get a "do over".