Price Police

[TrastyTrader111]

Hey fellow traders,

Have you ever been ready to make your move, only to have your broker reject your order due to unfavorable pricing?

Recently, I was trying to submit a closing order for a covered stock position, but faced some challenges from the platform where I had to break apart the order and sell the options and the stock separately.

Such situation exposes myself to potential changes in the market between the two transactions.

Have any of you experienced similar situations? and how did you mitigate this risk?

I believe that sharing these experience can help us grow together as a community and looking forward to learn more from you.

Thank you in advance!

 

[BKR88]

Recently, I was trying to submit a closing order for a covered stock position, but faced some challenges from the platform where I had to break apart the order and sell the options and the stock separately.

Firstrade doesn't allow a covered call as one trade, unfortunately.

Have any of you experienced similar situations? and how did you mitigate this risk?

Used a different broker for covered calls.

 

[TrastyTrader111]

Thanks for the info, have you ever encounter instances where your orders were rejected due to 'unfavorable prices'?

 

[maxinger]

Thanks for the info, have you ever encounter instances where your orders were rejected due to 'unfavorable prices'?

Most likely you are not an honest person and are hiding vital information
(intentionally or unintentionally).

You probably trade stocks that are very illiquid.

Market makers have to bring home the bacon every day (or at least every week).
If not, his family will be starve to death.
If retailers starve to death, that is not the MM problem.

 

[M.W.]

No, never

Thanks for the info, have you ever encounter instances where your orders were rejected due to 'unfavorable prices'?

 

[BKR88]

Thanks for the info, have you ever encounter instances where your orders were rejected due to 'unfavorable prices'?

I occasionally trade illiquid options with wide spreads so I'll place a limit order to buy a covered call. I'll only place the trade if BOTH positions are filled at the same time. That's why I won't trade these on Firstrade since their platform won't allow it as one limit order.

Never had an order rejected because of the wide spreads.
Based upon your other *odd* experience with TastyTrade, I think I'd find a new broker.

 

[murray t turtle]

Thanks for the info, have you ever encounter instances where your orders were rejected due to 'unfavorable prices'?

%%
YES;
''priced too far from market'' I thought the broker[ no longer with them] was trying to rip me off from some profit.
Actually they may have been right= because day prices seldom== if ever moved thereLOL;
i meant a good to cancel order, nota day order, which i accidently placed LOL
GTC expires APRL 19 2025 on SCHW if placed today

 

[engineering]

Ibkr warns me about rejecting orders based on price ever damn time I enter an order but they haven't done it yet.
Just another stupid box to click.

 

[TrastyTrader111]

Most likely you are not an honest person and are hiding vital information
(intentionally or unintentionally).

You probably trade stocks that are very illiquid.

Market makers have to bring home the bacon every day (or at least every week).
If not, his family will be starve to death.
If retailers starve to death, that is not the MM problem.

The stocks are I trade are S&P500 companies with avg volume between 1- 5M and the reason given by broker isn't liquidity.

Since this was a covered stock order to exit a position that was assigned, The price of $219.50 was unfavorable since it would not have been cost effective for you to close the position at that price. Since we only assess a $5.00 fee for exercise and assignments, closing a covered stock order for more than $0.05 beyond the price of the strike would be cost prohibitive.

What other information have I missed out that will benefit the community?

 

[TrastyTrader111]

I occasionally trade illiquid options with wide spreads so I'll place a limit order to buy a covered call. I'll only place the trade if BOTH positions are filled at the same time. That's why I won't trade these on Firstrade since their platform won't allow it as one limit order.

Never had an order rejected because of the wide spreads.
Based upon your other *odd* experience with TastyTrade, I think I'd find a new broker.

Thanks for your feedback.

It's indeed strange as I wasn't attempting to close multi-leg options from different exchanges but a covered stock yet my order seems to be rejected in my best interest.


More odd experiences on my call options, even those >30 days out were assigned and I'm made to close them manually, individually incurring more losses than I would with my protective put in place.

Has anyone received Preflight Checks that rejects their orders?

I'm learning from fellow traders here on the restrictive practices of brokers before I slipped into another rabbit hole.