Insane TSLA weekly option fill, busted

T

tb123

Hi all,

Very new to this forum, and hoping to get some advice on a busted TSLA call trade in the last 24 hours.

Just before trading was halted on TSLA on August 7th, i purchased a 380C expiring on Aug 10th at 5.77 through TD Ameritrade.

At that time i had no idea what was going to happen to the underlying price upon trading resumption (never held a position during halted trading before), so i set a sell to close order at 120, so effectively 12K for 577 dollar contract. I just threw this out there as you never know what could happen in a panic situation, with folks covering and what not.

To my extreme suprise it got filled at 12K 5 mins before market close, so about 10 mins after TSLA resumed trading. My plan was to close the position that day, for a small gain, but id clearly hit the lottery when it got filled and funds hit my trading account.

Next day i got a vmail for TD which i promptly returned to be told that trade was busted due to catastrophic error condition 6.25 in the rules, and that was that. I have since spent today finding out what can be done by me for recourse, as the price opened lower today.

Could anyone offer any advice if i have any recourse available to me? I get that it was a ridiculous fill, but if its human error on the other party, not sure i should i eat the trade right? TD and CBOE regulatory teams have been zero help today, hope someone here can help!

Thanks in advance
 
Last edited by a moderator:
Wow... this is not bs.
I just looked at yesterday's high on the $380 calls.... high is $120.
:D:D
I say wire the money out and sign up with IB.
ASAP
 
Yep that was me! Too late they took the money back even before the market opened today. I wish i would have done that yesterday, but not sure it would have been allowed anyway due to clearing rules
 
tb123 said:
Yep that was me! Too late they took the money back even before the market opened today. I wish i would have done that yesterday, but not sure it would have been allowed anyway due to clearing rules
More...
You must have been the only sell order there was when the halt lifted... and somebody that was short entered a market order to buy.... but I'm probably way off on this.
Robert Morse here was a floor trader, he might know what happened if he see's this.
 
tb123 said:
Hi all,

Very new to this forum, and hoping to get some advice on a busted TSLA call trade in the last 24 hours.

Just before trading was halted on TSLA on August 7th, i purchased a 380C expiring on Aug 10th at 5.77 through TD Ameritrade.

At that time i had no idea what was going to happen to the underlying price upon trading resumption (never held a position during halted trading before), so i set a sell to close order at 120, so effectively 12K for 577 dollar contract. I just threw this out there as you never know what could happen in a panic situation, with folks covering and what not.

To my extreme suprise it got filled at 12K 5 mins before market close, so about 10 mins after TSLA resumed trading. My plan was to close the position that day, for a small gain, but id clearly hit the lottery when it got filled and funds hit my trading account.

Next day i got a vmail for TD which i promptly returned to be told that trade was busted due to catastrophic error condition 6.25 in the rules, and that was that. I have since spent today finding out what can be done by me for recourse, as the price opened lower today.

Could anyone offer any advice if i have any recourse available to me? I get that it was a ridiculous fill, but if its human error on the other party, not sure i should i eat the trade right? TD and CBOE regulatory teams have been zero help today, hope someone here can help!

Thanks in advance
More...

I do not think you have any recourse and should just close your position. Today, TSLA traded
as high as $9.50 to as low as $2.55 and closed at $3.15. You probably, could have exited today as close to $5.77 as possible. Take the residual value of your options. You have tomorrow and Friday. Do not allow it to expire worthless.
 
Thanks for the info! Based on conversations with TD and CBOE regulatory, no one seems to know what if any procedural recourse exists. Figured i would at least spend today getting answers, so i know for next time at the least, and will for sure close out the trade as best i can.
 
I am assuming the fill took place at the CBOE. Here is the link to the rule (I believe there are some updates) http://www.cboe.com/publish/regcir/rg15-074.pdf

It sounds as though your trade bust is legitimate. The key here is when TD informed you of it. They should have informed you before the opening today, if not I would approach them and say their call to you wasn't timely and didn't give you an opportunity to get out of your position at the best price (if that is indeed the case).
 
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