Very Profitable Position Force Liquidated After 999% House Maintenance Margin Met

Discussion in 'Retail Brokers' started by craigr1, Jan 29, 2017.

  1. Robert Morse

    Robert Morse Sponsor

    I'm interested to know what the basic positions was. Were you net short a lot of cash settled index options?
     
    #11     Jan 29, 2017
    VPhantom likes this.
  2. InfoTech

    InfoTech

    I looked at your screenshots.

    How could the position have been any less concentrated when it was "approved and established"? I see a short strangle (assuming the redacted symbols match). You are slightly less short on the 24th, but that doesn't have anything to do with concentration.
     
    #12     Jan 29, 2017
  3. Zzzz1

    Zzzz1

    Why did you blank out the contract specification which does not contain any personal information?

     
    #13     Jan 29, 2017
  4. Overnight

    Overnight

    Is it possible you exceeded the position limit with that exchange/instrument?
     
    #14     Jan 29, 2017
  5. craigr1

    craigr1

    I just don't want a community of traders to know what my positions are.
    Good question. I think Etrade would have used that excuse rather than using highly concentrated if I exceeded the position limit.
    Moving past the positions and Etrade's rationale, I'm still hopeful for insight and assistance with regard to journalists, attorneys and legal citations.
     
    #15     Jan 29, 2017
  6. Robert Morse

    Robert Morse Sponsor

    You should know that your option agreement most likely gives them the right to do this.
    You should also know that the SEC investigated customers and FINRA investigates Broker Dealers.

    No attorney will take this case as you laid it out.

    Sorry..Bob
     
    #16     Jan 29, 2017
    VPhantom and dealmaker like this.
  7. craigr1

    craigr1

    It's not a short strangle, you can ignore the top position. I apologize for the confusion. Though it's profitable, it's not what Etrade seemed to care about and I was told it didn't matter if I liquidated it, though I was thanked for the offer. The position became less concentrated due to its performance becoming increasingly less valuable to the options purchaser and therefore deteriorating in price. As the seller, that means that it represents a significantly lesser percentage of my portfolio than before. <http://www.finra.org/investors/concentrate-concentration-risk>
     
    #17     Jan 29, 2017
  8. Overnight

    Overnight

    That is pure paranoia. We don't know who you are. Nobody is out to "get you" on your positions. There is no trading cabal that will somehow mess up your holdings.
     
    #18     Jan 29, 2017
    Zzzz1 and lawrence-lugar like this.
  9. craigr1

    craigr1

    Bob, I understand your perspective as someone who works for a broker, however the SEC is already investigating and awaiting Etrade's response. Per the second principle of the Securities Act of 1933 and the Securities Exchange Act of 1934, "companies that sell and trade securities (brokers, dealers and exchanges) must treat all investors fairly and honestly." <http://www.investopedia.com/ask/answers/112.asp>
    Again, I understand your confidence regarding an attorney you may be right. The one considering it is probably the foremost in these matters. Maybe you know more than him, the expert!
     
    #19     Jan 29, 2017
  10. zdreg

    zdreg

    it is doubtful that a lawyer would advise you to post in a public forum. what is your purpose in posting?
     
    Last edited: Jan 29, 2017
    #20     Jan 29, 2017
    dealmaker likes this.