Complaint - GME liquidation problem which resulted in huge negative liquidation value

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Baldur01 said:
They liquidated me at 213USD option price, prices went up from 65USD. Quite a premium to pay.
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you could have open an account with another broker, and write a put instead to offset the loss :p

you were writing calls, it's dangerous if you don't know how. If you had bought that call at 65 when the underlying was trading at 50, then it would have been a different story :)
 
you also need to learn about that famous formula for options parity, to cover the call, you could have short some kind of floating rates ETFs with no volatility to "fund" the margin call before it happened.
 
The put-call parity:

The formula for put call parity is c + k = f +p, meaning the call price plus the strike price of both options is equal to the futures price plus the put price. ... For example, if the futures price is 100 minus the call price of 5, plus the put price of 10 minus the 105 strike equals zero.
 
Butterfly said:
you also need to learn about that famous formula for options parity, to cover the call, you could have short some kind of floating rates ETFs with no volatility to "fund" the margin call before it happened.
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There are many things, I could have done, if it was be possible to do. But again, with negative net liquidation value, you can just wait for the broker to liquidate you. There is not a single trade you can enter.
 
Baldur01 said:
What is FOS? When I tried to call them yesterday, I was waiting 30min in waiting line. Had to call multiple times until someone picked up. On 27th, I called multiple times and did not get through.

@destriero. No need to get insulting. I am simply asking for advice.
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You're looking for an out. Your out was not shorting naked calls. Now you are whining for your clearing firm to bail you out. I despise this shit... take RESPONSIBILITY. It's not your broker's job to protect you from yourself.

Imagine a fast market in shares in which you shorted NAKED and were debit. It's not as though you're going to pay it back so what difference is the size of the debit?
 
Baldur01 said:
There are many things, I could have done, if it was be possible to do. But again, with negative net liquidation value, you can just wait for the broker to liquidate you. There is not a single trade you can enter.
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yeah, they froze your account because compliance saw you were a big fucking risk.
 
Thank you, everyone for posting help/opinion. Unfortunately, the answers moved to an unproductive direction. Hence, this will be my last post.
 
Butterfly: ... especially with crazy volatility stocks like GME. Feb 19 70 puts when the stock was 310 were 15.50. Around 23 today. I mean... stock is down 80%, the puts went up just a bit :) Not that I didn't expect that but still.
 
Baldur01 said:
As your net liquidation value ist negative, you can not make any trades / cover. You can just wait to be autoliquidated. If I had the chance to cover, I would obviously cover. However, autoliquidation was not done 10 minutes after the market opened, which the broker told me on the phone, but 4 hours later, after the stock had time to move up insanely.
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that can’t be true. They must let you close trades to make your account in compliance.
 
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