Options Trading Is Rigged Against Average Investors; Payment for order flow allows brokerages and b

[Sergio123]

So, what can one do to prevent such an early assignment?
Doubling down the current unrealised percentual loss? Hmm... not really my taste...

I will either play gingerbread man, or just prepare for the inevitable.
Or if you're thesis has changed from when you opened it, then change with it.

You have to be a scrambler and an improvisor, and call audibles at the LOS when your trades breakdown.

 

[taowave]

What in the world are you talking about???

Did you start trading yesterday??

Or are you caught in a time warp with American style Index options,cash settlement and futures????

I think also the "American Style" in options trading is predestined for rigging and robbing the traders,
b/c the trader gets stopped by the counterparty as soon as his position is even slightly in loss, so that the counterparty closes the trade by early exercising.
Of course also the broker itself (his secret buddies) can claim to be the counterparty! Since the broker knows all data of the trades...
American Style looks much like a nightmare, IMO... Should be abondoned by the European Style, so to disallow any such "early exercise / early assignment frauds".

 

[taowave]

Whats the big deal about getting assigned early,ignoring dividends,carry,ability to borrow/buy in risk??

Options are worth more Alive then Dead...

Learn the basics

So, what can one do to prevent such an early assignment?
Doubling down the current unrealised percentual loss? Hmm... not really my taste...

 

[Robert Morse]

Don't hold short call ITM with Dividend paying stocks.

So, what can one do to prevent such an early assignment?

 

[Quanto]

Don't hold short call ITM with Dividend paying stocks.

But that's important only for the ex-div date, not generally.

 

[Quanto]

I will either play gingerbread man, or just prepare for the inevitable.
Or if you're thesis has changed from when you opened it, then change with it.

You have to be a scrambler and an improvisor, and call audibles at the LOS when your trades breakdown.

But in your previous posting you said this:

You, and your broker should be in alignment with the same goal to grow your account so that you can trade more.

I was eating alot of early assignments in September. But It ended up working out well.

If you can figure out what you should be doing then you can make money in whatever market participant role that you are in.

Another dishonest BS talker...

 

[Quanto]

Whats the big deal about getting assigned early,ignoring dividends,carry,ability to borrow/buy in risk??

Options are worth more Alive then Dead...

Learn the basics

Just shut up hollow talking zero-contributor...

 

[taowave]

Are you seriously whining about American style options and early exercise???

If there are no divs and you can borrow the stock,why wouldnt you want to get assigned early on a short call??

You are welcome

Just shut up hollow talking zero-contributor...

 

[rb7]

@Robert Morse, nobody can control/verify that the assignment came from the OCC...
And, can OCC be trusted?...
QUOTE]
You should stop replying on things you know nothing about. You just keep discrediting yourself big time.

You're welcome.

 

[caacapital]

i agree selling orderflow to market making firms should be not be allowed if they are allowed it should be payment to the actual customer. you can see that 1 contract has the ability when to suddenly shift the bid/ask or hold price off unless of course prices is going against your order for a peroid of time.