Ise

[metooxx]

Originally posted by GATrader
Does anyone here have any experience with busted trades from ISE. I bought calls at 1.45 when market was 1.8 bid /1,85 offered. After I got an execution report at 1.45 the stock tanked hard in the next 2 minutes, I assumed that the trade would'nt be busted since the stock wnet down so I covered the calls at a loss. Does ISE bust a lot of trades?

Thanks

No.

 

[mskl]

Originally posted by GATrader
Does anyone here have any experience with busted trades from ISE. I bought calls at 1.45 when market was 1.8 bid /1,85 offered. After I got an execution report at 1.45 the stock tanked hard in the next 2 minutes, I assumed that the trade would'nt be busted since the stock wnet down so I covered the calls at a loss. Does ISE bust a lot of trades?

Thanks

They can bust trades. Go to

http://www.iseoptions.com/download/rules.pdf


Rule 720 (Obvious errors)

I believe 50 cents is the approximate cutoff.

However, the ISE has a pending rule that reduces it to 25 cents for options under $3.00

http://www.iseoptions.com/download/SR-ISE-2001-34.pdf

 

[GATrader]

Thanks alot mskl.
I perused at the rule book and I think what happened to my trade which I am now confident will not get busted is a block trade > 50 contracts wherein any customer bid higher can get filled at the block trade price, which in this case is 45 cents lower. Sorto like price improvements in the NYSe. It is amazing that right after that big block of calls sales, BMY went down greater than 60 cents. Frontrunning perhaps?