CXL time limits on options

[Jones75]

April 23, at 3:58:15 EST, I submitted a limit order trade through RBC Direct for, buy-to-open, ABX, ITM, Jul, 18, (protective) puts, bid 1.70, ask 1.78. The spread is beyond what I like, but ER was after close, and IV was ok.

I had forgot to insert the number of puts I wanted, so the screen reverted back to the original, now with the bid 1.70, ask 1.80. I pressed the buy button, and then taken to a screen showing the buy at 1.84. Immediately, I CXL, time 3:58:55 EST. It was recorded as a CXL with an id number and time.

Today, I see my account had the ABX puts bought at 1.80. There was over 4,000 OI, so liquidity was there.

RBC's explanation was, between the buy and CXL, the MM had made the trade…so too late. It's in the fine print.

Less than one minute? Why have a CXL button?

I've been trading since 2005, and have never had this experience. Do I report this to the SEC, or lick my wounds and play it out?

 

[truetype]

In general, your fingers aren't quick enough to cancel marketable orders. I've been filled on "typos" dozens of times.

 

[Robert Morse]

From your description alone, I expect you got an execution on the offer in less than a second, even if you did not get the report for a few seconds. Exchange rules does not allow you to cancel this as it is not an obvious error.

Sorry, not what you wanted to hear. For those that have these issues, leave the pop ups to check your order before sending.

Bob

 

[Jones75]

Thx all, for the responses. Lesson learned.