WTF? Down 15k on huge option mispricing. Can someone check please

Discussion in 'Interactive Brokers' started by Tomaz26, Apr 30, 2020.


  1. Yeah, I haven't traded CL in any size since 2005. Our CL options broker was filling a 400 lot fly in CL that was like 40x80 indicated. He was known by me and working it on a not held basis. Something went wrong, guy left the pit and someone lifted the 0.80 offer on 400. I had no leg to stand on but the clearer adjusted it to 0.60.

    Not a big deal, but this stuff can be deleterious to your account. All screen-traded now. So spread and always use limit orders.
     
    #51     Apr 30, 2020
  2. Tomaz26

    Tomaz26

    Yep, I am certainly staying away from any nakes from now on.. Too much problems down the way. And as you said going with spreads skew works for me too.. Like I said this time it turned out ok with a profit, but I still sit at a nice loss from direct CL trade (from Saudi / Russia shit and then Covid lockdown on top..) and I guess now I am trying to revenge trade crude to get that money back :) I had soooo many options to close the directional trade for break even or even small gain when I had 3 cl longs and rode them up from 22 to 28, only to being greedy and watch them go back to 20... Lost 20k of unrealized profits in few days.. Grrrr.. But when I saw what happenes with negative pricing I figured that also could have been me so at least I am still here fighting :)
     
    #52     Apr 30, 2020
    Nobert and PoopyDeek like this.
  3. zdreg

    zdreg

    It is time for you to be brutally honest with yourself. In the US it is National Honesty Day. Even though you are in Europe make it your day also. You were a light weight fighting in the heavy weight division. Consider yourself lucky. Reassess how you trade. Lots of luck.
     
    #53     Apr 30, 2020
    Nobert and Tomaz26 like this.
  4. donnap

    donnap

    So true.

    I was successful selling high IV with the May contract.

    Not so in June. Sold some puts (1x2 ratio write) for what IB said was around 190IV.

    IV went to 300+ pronto.

    Despite getting direction right, the trade has mostly been at a loss.
     
    #54     Apr 30, 2020
  5. Sig

    Sig

    I don't believe there's any evidence that this is IBs goal in any way, shape, or form. Their goal is to ensure your account never goes negative so they don't ever lose a precious dollar, and that is all. They couldn't care less if their method incorrectly determines a price in a way that screws the customer, just so long as they're never impacted. I've had them close out cash settled SPX vertical spreads because "The Algorithm" incorrectly decided it could lose more than the max amount a spread could lose and they basically told me to fuck off when I asked why.

    The real irony is that they just lost $80M precisely because they don't have a customer feedback loop and depend on "The Algorithm" as if it is a deity that can do no wrong. Serves 'em right!
     
    #55     Apr 30, 2020

  6. They're not stupid. They're asking for more than the debit req to reduce individual account leverage across the board.
     
    #56     Apr 30, 2020
  7. taowave

    taowave

    Hey Poop,is your "don't short naked vol" specific to CL,or is that a policy of yours..Pretty sure I have read posts where you were short synthetic straddles in TSLA..Just curious

     
    #57     Apr 30, 2020

  8. I do it in eq-vol all the time on long term holds.
     
    #58     Apr 30, 2020
    NQurious and taowave like this.
  9.  
    #59     Apr 30, 2020
    NQurious likes this.
  10. @PoopyDeek could you take me off block/ignore?

    Thanks
     
    #60     Apr 30, 2020