PUT options liquidated at worst possible prices

hehe...at 2:52pm...when IB was flashing a margin warning message, my mind was in a blur... I don't really care its -20k or -200k bcos its impossible..and i can't do anything about it..there was just no price available for me to take off my verticals. Within 2 mins all my stocks were liquidated.
 
Quote from hanabi418:

hehe...at 2:52pm...when IB was flashing a margin warning message, my mind was in a blur... I don't really care its -20k or -200k bcos its impossible..and i can't do anything about it..there was just no price available for me to take off my verticals. Within 2 mins all my stocks were liquidated.
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Why is your account two and a half years old without any posts?
 
Wrong. First, the OP didn't get assigned. Second, SPY options are American but NOT cash settled. OP was "long June SPY 119 PUT options and short June SPY 114 PUT options" so assignment would make him long SPY at 114, which GUARANTEES AT LEAST max payout of spread because he'd still hold the long 119 puts while owning SPY at 114.
Quote from jimrockford:

This isn't true. If an option spread is American style exercise, and the short leg is assigned prior to expiry, and then the underlying subsequently moves against the long leg before it can also be exercised, then there can be a loss far greater than the premium paid + commissions.
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well what can I said...there's nothing for me to post in the forum before this incident..

i was angry with IB, but lets just move on..probably I will not get thing back.

I bought back my ETFs, bought back some verticals..and continued to trade...though after may expiry, no more options for me in IB..will continue to trade stocks in IB as their stocks trade commission is still cheap though...TOS cost 5 bucks per trade.
 
Given how this thread is full of innuendo I do want to point out the liquidations were not due to option pricing. Keep in mind the currencies were and are extremely volatile and if you hold a portfolio of currencies, those do get marked real time and if such movements put an account into deficit, the portfolio could be subject to liquidation.

Thursday was indeed a black swan event. While our system is far from perfect, the fact that there seem to be only a handful of cases that need to be dealt with, the system performed remarkably well given the volumes and extreme volatility. Of course we'll learn from this, adapt and make prudent adjustments. The liquidation system is designed to protect IB as well as client funds.
 
Quote from def:Given how this thread is full of innuendo I do want to point out the liquidations were not due to option pricing. Keep in mind the currencies were and are extremely volatile and if you hold a portfolio of currencies, those do get marked real time and if such movements put an account into deficit, the portfolio could be subject to liquidation.

Thursday was indeed a black swan event. While our system is far from perfect, the fact that there seem to be only a handful of cases that need to be dealt with, the system performed remarkably well given the volumes and extreme volatility. Of course we'll learn from this, adapt and make prudent adjustments. The liquidation system is designed to protect IB as well as client funds.
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So, the OP had currency positions? That explains part of it. But I still don't see how throwing away put verticals which is worth $500 a pop for next to nothing protects either the customer or IB.
 
Thank you for touching base. This thread became quite ingrown without any official word.

Anyway, do you know what caused the liquidations if it wasn't option price?
 
My IB don't hav currency positions. Def can you tell your boys to take a look at my IB ticket. It has been pending for 4 days without anybody assigned.

If I am in the wrong, then I have no issues but I do hope IB can explain how the liquidations are determined. Thanks.
 
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