Can one of you experts please look at this option: GLD_091711P175 and tell me how I could have been stopped out at $2.22 at 8:30 this morning? My stop was $6.80. Now I know it is possible for the price to slide right through a stop but I can't see where this option traded anywhere close to $2.22. Thank you for your time.
Wow. Thanks but still, wow. What lesson can I learn here? Not to put stops on options? Not to leave that stop in place overnight? The daily chart in TOS doesn't show that option ever trading today below $5.65 or so, so I was really confused. That is an expensive lesson, whatever it was, but I have had more expensive ones. Thanks for your help.
Looks like your 1 lot on the PHLX was a bad print. The only thing I can think of is that they on the opening put out stub quotes a way from the market and your stop was triggered. Was it a stop or a stop limit? I would call your broker and have the print adjusted to the trade right before your print of 22 @ 6.10 on the PHLX. Looks like the AMEX also did the same thing with prints of 1 @ 2.3 and 10 @ 3.7.
+1 Use S-limits; at least a limit of 5.00 would've been filled. Best to avoid stops on options altogether.
No stops. And to reduce your risk you could sell the GLD Sep 2011 170.00 Put for about $4.50 - or whatever the bid was at when you bought the 175 puts. http://finance.yahoo.com/q?s=GLD110917P00170000 This would be a Debt Spread
Yes, listen to this pro as he uses BOLD font to denote his high level of skillz I think it's a debit spread brah.
Hopefully that wasn't your entire account on the line. But when I place stops on options, I always do limit orders, even if the limit is not near my stop. Like, the order goes through if price is below X, but I won't accept less than Y amount for the option. So, for this trade, set a stop if the price goes below 6.8, but have a limit of 6.6, so even in a very fast move you'll get no less than $6.60, and in most cases $6.79 or $6.80.