Am I being ripped off by my broker?

N

nxt7

I had bought a weekly put option on the SPY that was failing for a good part of most of the week until today when it finally started to go In the Money. However the Bid price of the put is rising extremely slowly as the SPY decreases in like 0.5 increments, but it depreciates extremely quickly for just a 0.1 increase of the SPY. Are puts supposed to work this way or am I being ripped off by my broker? At this rate its unlikely I'll even breakeven. My put option's strike price was 208.5 and as of right now the underlying is at 208.36
 
It's just how the market works. Underlying price goes down, IV goes up which gooses up the time value part of the option's price. Underlying price goes up, IV goes down.

Clearly your put is not ITM enough for delta to have as much effect as IV. As the option goes more ITM the time value part of the price becomes less important.
 
stevegee58 said:
It's just how the market works. Underlying price goes down, IV goes up which gooses up the time value part of the option's price. Underlying price goes up, IV goes down.

Clearly your put is not ITM enough for delta to have as much effect as IV. As the option goes more ITM the time value part of the price becomes less important.
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alright i see. thanks for the responses.
 
CBC said:
Um, yes they can. Depends who you are clearing with.
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-Futures EOD marks are done by the exchange like the CME
-Equity or equity option EOD marks are either based on EOD Best Bid/Best Offer midpoint or last sale depending on the broker.

I'm not sure what other experience you have had. I have not seen any broker base your marks on some other process.

Bob
 
rmorse said:
I'm not sure what other experience you have had.
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I lost 1/3 of my account due to this, thats my experience. I would screenshot options chains of the ES and then screen shot them with a 10+- point difference. Everything seemed normal. Then when I entered a trade and tried to close the trade 10 points later, I would get a different results. Of couse this would not be in my favor.

There have been other people post here who have had multiple accounts at different clearing companies and have brought up option chains side by side and they have been a completely different set of numbers. If I had more $ I would open accounts at different clearing companies and screenshot it myself so as to stop traders losing $.
 
Options on futures? I'm not sure how, if you have real time data, that your ES markets on your trading platform can be different from mine or how end of day marks can differ. When you asked your FCM, what did they say? It sounds to me like something is wrong that I have not come across, ever. You can check option settlement prices here.

http://www.cmegroup.com/market-data/settlements.html
ftp://ftp.cmegroup.com/pub/settle/stleqt
 
Dunno why ur talking about settlement prices for.

My last trade was I entered a ES call for $5.0 and the ES jumped 10 points. I thought that my option should have at least gone to $9-$10 however the quotes / mid went to only $5.80..... 80cents??????? AFTER A 10 POINT MOVE IN THE ES???

I checked the next day by watching the chains / quotes and after the market jumped 10 points the options I was looking at doubled in $$. Clearly I was getting different quotes when I had a trade on.....

Did I call the FCM???? U gotta be kidding

I took my $$ out ASAP...

Even then they spent 3 weeks not handing over the $.
 
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