Post feedThe ORBC Debacle: Updated
I talked with Tom at ThinkorSwim a few minutes ago. He gave me another update that you should be aware of.
Apparently ORBC is an AMEX only product. Normally an option will trade on various exchanges, but this one trades on the AMEX only. AMEX is not an electronic order flow system. This means options are traded pit-style here. Similar to how they did back in the 80's.
There are very very few issues that trade AMEX only but if you do trade these in the future, refrain from using a hard stop order. As the market maker widened the spread, and filled you at a price that was against the rules, had there been no pending order to sell, you would still be in the trade.
A big thanks to Tom and his staff for the great organization that they are. I can't believe I caused such a mess. My fault.
Apparently ORBC is an AMEX only product. Normally an option will trade on various exchanges, but this one trades on the AMEX only. AMEX is not an electronic order flow system. This means options are traded pit-style here. Similar to how they did back in the 80's.
There are very very few issues that trade AMEX only but if you do trade these in the future, refrain from using a hard stop order. As the market maker widened the spread, and filled you at a price that was against the rules, had there been no pending order to sell, you would still be in the trade.
A big thanks to Tom and his staff for the great organization that they are. I can't believe I caused such a mess. My fault.
"As the market maker widened the spread, and filled you at a price that was against the rules"....So does this mean that everyone that got taken out by some unscrupulous marketmaker just takes the hit and has no recourse? That doesn't seem quite fair.
Doug
Posted by
Anonymous |
1/30/2007 12:13:00 PM
Hi Doug,
As Jeff said in the previous ORBC post:
"Since you cannot trade an option this far below parity, the exchange approved price adjustments to be honored at 2.80. If this has not been reflected in your account, GET ON THE PHONE."
So, there is some recourse. But you are still out of the trade. It's part of the game we are playing. There are bad calls in sports, sometimes there are bad calls in the market.
Joel
Posted by
Anonymous |
1/30/2007 12:28:00 PM
ORBC folks who were stopped out:
ORBC Mar $10 calls are trading today at around $2.50 If you got stopped out it's a perfect time to get back in, if you want. If you're getting $2.80 on the stop, you're up .30 and are beating the rest of us.
Chris and Catherine
Posted by
Anonymous |
1/30/2007 12:36:00 PM