I had a bust in AWE options earlier this year on the ISE. It was the first and only time for me on the ISE.
TASR is a wild stock. The price moves in giant chunks. How can they claim a fill a stinking buck out of line is erroneous? ISE is automated, so they blew it on thier end. At bare minimum , they should make the trader whole , so he doesn't incur a loss on the round trip. If this was in fact a RESTING limit, and not a grab for a mispriced contract, even more heinous.
heilbonner demand restitution these guys wil cave. If not take it to arbitration. It nuts that they have an out of range volatilty measurement yet they do not use that filter on their computer. Discovery would be a great part of arbitration. How got the fill, how often does that party get busts. I bet they cave because if you ask the right questions you will have fodder for the local district attorney. Also, I am will to coach you from a far. I am licensned in ca and I do not practice anymore but I have always hated seeing people say your screwed its the law.
The option exchange cannot keep track of all the orders of every trader. It is up to the broker to do that. About 10 months ago, I entered an One-Trigger-Other combo order. The first MSFT option trade was executed. Then the second one was submitted to the exchange, and executed as well. For some unknown reasons, PSE busted my first trade. My broker busted the second order on my behalf. I still do not understand why the exchange busted the trade. It would be hard to believe that a MSFT option order could be filled out of the volatility range. However, I did lose nothing, so I let it go.
Can you supply the day and time of your trade. I'd like to do some research. Did you come in via IB ?
This trade was busted under the obvious error rule at the ISE. The order was received at 9:54 .. filled at 9:58 and busted and reported at 9:58 To view the obvious error rule you can visit the ISE website www.iseoptions.com The prevailing market was $14.90 X $15.30 at the time of the bust Hope that helps