Insane TSLA weekly option fill, busted

Yeah, that sounds like a legit bust. I had the $370c and was watching like a hawk after trading resumed....I would not have missed a spike in the spreads like that. Sounds like you got filled outside of the NBBO.

My understanding is the broker must contact you directly if someone requests a bust within NBBO...doesn't sound like the case here. Was it at 3:55 or do you mean 3:55ish? Because 3:55 was 10 mins in and the spreads were down under $2 by then.

Also search "Clearly erroneous execution" both in the forums (thread content...not just title) and on google. This is the 'busted' trade regulation.
 
Thanks Vandzant and beerntrading! I will definitely try to get TD to at least get me some commission free trading!

I wasn't contacted at all until the next morning so morning of the 8th today. In fact they just left a vmail before market open and asked me to return the call no details or urgent marked, which i ended up doing an hour or so into market open. The fill times are attached, im MT timezone, so 2 hours before ET.
TSLA Fill.jpg
 
Yeah, I know there's a 30 min window after the trade to bust it...The other time I heard of this the counterparty's broker contacted the counter party who refused to bust the trade (it was within the NBBO....a fat finger error, and ATH....so different situation there--wasn't busted).

There's your execution...this one is certainly interesting. You weren't the only one (but you were the best!)

TSLA bust.JPG
 
Thanks so much for the reply! Wow, i see how many filled outside NBBO, at least theirs were within reason i guess.

The other thread is a terrible situation for that person! I guess i should have known that the fill was completely out of reason. Will follow up with TD on procedure and what if anything brokedown on their side, maybe i can push for something from them. Thanks again!
 
tb123 said:
Thanks so much for the reply! Wow, i see how many filled outside NBBO, at least theirs were within reason i guess.

The other thread is a terrible situation for that person! I guess i should have known that the fill was completely out of reason. Will follow up with TD on procedure and what if anything brokedown on their side, maybe i can push for something from them. Thanks again!
More...
It looks like someone directed a market order to CBOE. Everything below $12 and 12.05, 12.55 and 13.30 would have been resting orders (profit taking)...$12 was likely the market maker who was providing liquidity (meaning the MM's spread was likely $6.50 x 12.00 on CBOE). Being so near close and on a very lop-sided market there was a considerable delta hedge risk to carry, and after the 11 contracts went, there was nothing behind the MM but a few profit targets and you.

So market order for 21+ contracts gets direct routed to the exchange and they buy up all the liquidity (it's entirely possible no one was above you and their order went partially filled). That's only $36k in play. But it's a really strange order because this was someone with enough know-how to bust a trade, also had at least $15k to throw at this trade ($7.50 x 21+ contracts), but doesn't have basic knowledge of routing an order and irresponsibly using a market order in a very illiquid environment.

Stranger still was the two orders just above yours that look like they were part of the same order, but these were inter-market sweeps. It's ordinary to see, for example, someone sweep the market with a bid of $8 against a $7.50 offer (particularly with low liquidity) but you'd never do it without a limit. But 27 contracts at $8 would be a very ordinary order for a pro to place in that trading environment--I'd need the deep book history to try to infer the counter party's intent. I think the counter party's order must have gotten wrong somewhere between their broker and CBOE.
 
I cant say i fully understand the counter parties actions as you described them above, but i would like to, so will read up on order flow to understand this a little better. Thanks so much.

I looked at the market depth for that call yesterday after it filled and saw a really strange order with 0 size at 998 and 999, could that have something to do with it or is this normal, wish i had grabbed a screen print!
 
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