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PUT options liquidated at worst possible prices
- Thread starter somedudetrader
- Start date
Quote from jimrockford:
Atticus,
The OP was lying to us all along. His first disclosure of his positions mentioned an unspecified amount of cash, but never mentioned any FX position. The OP later claimed the FX position was small, when in fact, as IBj has revealed, OP's FX position was many times the size of the account's value, and existed for the purpose of margining his huge options position. The OP also claimed the FX position was moving in his favor that day, when in fact, as IBj has revealed, the FX position was moving against him by a massive amount. OP also failed to inform us that that the value of his put spreads was many times the size of his account, and that he was heavily leveraged; and I say that his omission of that information was intentionally deceptive. His bogus excuse, for not giving additional details, was the need to protect the privacy and security of his account.
The OP was clearly at fault for violating IB's margin rules, and for misusing this forum and all of us, in an effort to damage IB's reputation, so as to pressure IB into covering the OP's gambling debts.
Right Jim. I mentioned 3-4x very early in the thread that the only possibility was that he was on call on variation margin. He assured us he was not. I also asked on more than one occasion to post the liq-notice, which he refused to do. Chalk it up to BS on the interwebs.
Sorry atticus, I deleted the post because I was going to rewrite it.
But still given what IB and the OP who said he was short CDN dollars for over a year, I still don't know what's going on.
But still given what IB and the OP who said he was short CDN dollars for over a year, I still don't know what's going on.
Quote from stefan_777:
Sorry atticus, I deleted the post because I was going to rewrite it.
But still given what IB and the OP who said he was short CDN dollars for over a year, I still don't know what's going on.
Yeah, I recall that post in which he stated it was a long-term position. I don't believe a word of it. Maybe he added before the reversal, who knows.
The OP needs to post a screen shot of every order and position history on and before that day for his entire account.
Until then, it's too opaque for me to comment on.
I'll go with IB's explanation unless he can post a better visual record of what happened to him.
Until then, it's too opaque for me to comment on.
I'll go with IB's explanation unless he can post a better visual record of what happened to him.
Quote from stefan_777:
The OP needs to post a screen shot of every order and position history on and before that day for his entire account.
Until then, it's too opaque for me to comment on.
I'll go with IB's explanation unless he can post a better visual record of what happened to him.
+1
The OP's story has "evolved" over the course of this growing thread.
IBj has finally given some answers which I have been asking. It seems like liquidation was somehow triggered by my cash kept in Canadian dollars. This was never confirmed by anyone else before, and I'm glad IBj has stepped in to clarify. I'm surprised that my cash kept in Canadian has actually triggered liquidation and not at all because of the wide spread of the option positions, so I will be waiting for IB to come up with the exact math on that. I'm sure international traders would be interested.
As I mentioned before, I am Canadian and keep my cash in Canadian dollars. On the day of liquidation these were my positions, also as mentioned:
- x amount of June 119 SPY puts
- x amount of June 114 SPY short puts
- y amount of May 40 USO puts
- y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- cash (Canadian)
Whoever is knowledgeable on the IB platform could tell that the FX position would be hidden by default, thus I mentioned that only after some digging. My Canadian cash is not a position thus does not show up in the Portfolio page nor the FX Portfolio.
Now that IBj has came out and basically confirmed that IB did liquidate at the ridiculous prices as mentioned, there should be no question in the validaty of the liquidation prices. What if the spread at the time was 0.01 and 9999? I personally would like the answer to that as the prices executed were ridiculous any way you see it. I will let you guys know what type of resolution will be taken by IB as soon as I get it. As of yet, the only concrete response from IB I got so far was the one we all see from IBj.
As I mentioned before, I am Canadian and keep my cash in Canadian dollars. On the day of liquidation these were my positions, also as mentioned:
- x amount of June 119 SPY puts
- x amount of June 114 SPY short puts
- y amount of May 40 USO puts
- y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- cash (Canadian)
Whoever is knowledgeable on the IB platform could tell that the FX position would be hidden by default, thus I mentioned that only after some digging. My Canadian cash is not a position thus does not show up in the Portfolio page nor the FX Portfolio.
Now that IBj has came out and basically confirmed that IB did liquidate at the ridiculous prices as mentioned, there should be no question in the validaty of the liquidation prices. What if the spread at the time was 0.01 and 9999? I personally would like the answer to that as the prices executed were ridiculous any way you see it. I will let you guys know what type of resolution will be taken by IB as soon as I get it. As of yet, the only concrete response from IB I got so far was the one we all see from IBj.
Quote from somedudetrader:
IBj has finally given some answers which I have been asking. It seems like liquidation was somehow triggered by my cash kept in Canadian dollars. This was never confirmed by anyone else before, and I'm glad IBj has stepped in to clarify. I'm surprised that my cash kept in Canadian has actually triggered liquidation and not at all because of the wide spread of the option positions, so I will be waiting for IB to come up with the exact math on that. I'm sure international traders would be interested.
As I mentioned before, I am Canadian and keep my cash in Canadian dollars. On the day of liquidation these were my positions, also as mentioned:
- x amount of June 119 SPY puts
- x amount of June 114 SPY short puts
- y amount of May 40 USO puts
- y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- cash (Canadian)
Whoever is knowledgeable on the IB platform could tell that the FX position would be hidden by default, thus I mentioned that only after some digging. My Canadian cash is not a position thus does not show up in the Portfolio page nor the FX Portfolio.
Now that IBj has came out and basically confirmed that IB did liquidate at the ridiculous prices as mentioned, there should be no question in the validaty of the liquidation prices. What if the spread at the time was 0.01 and 9999? I personally would like the answer to that as the prices executed were ridiculous any way you see it. I will let you guys know what type of resolution will be taken by IB as soon as I get it. As of yet, the only concrete response from IB I got so far was the one we all see from IBj.
IBj has stated you had a LEVERAGED position LONG in something other than your base currency. I posed a hypothesis that the bad NBBO marks could have been used by IB as a liquidation trigger, but IB assures us that is not the case.
Obviously you're hiding something. IBj has already shown why you were liquidated. A leveraged long FX position in non-base currency. My guess is you went long USDCAD at 1.07 on IdealPRO and got liquidated on your spreads when it hit 1.05. It's a guess because you're intentional obtuse and deceptive.
Post a screen capture of your liquidation notice. It will outline what caused the liquidation. This is the third time I've requested that you post it.
Quote from atticus:
IBj has stated you had a LEVERAGED position LONG in something other than your base currency. I posed a hypothesis that the bad NBBO marks could have been used by IB as a liquidation trigger, but IB assures us that is not the case.
Obviously you're hiding something. IBj has already shown why you were liquidated. A leveraged long FX position in non-base currency. My guess is you went long USDCAD at 1.07 on IdealPRO and got liquidated on your spreads when it hit 1.05. It's a guess because you're intentional obtuse and deceptive.
Post a screen capture of your liquidation notice. It will outline what caused the liquidation. This is the third time I've requested that you post it.
Only out of the benefit of the community am I giving what you requested. Here it is. I have already stepped over the comfort level in the exposure of my account, and now I find myself proving that I'm not lying. I stand by what I said and am not going to prove to you again. If you still think that it was the right action for a broker to sell positions at these prices when even just exercising the options without accounting for its IV and time value would be much much more appropriate, be my guest.
I believe when IBj mentioned FX positions, he meant my cash I kept in Canadian dollars, because my only FX position at the time was the short CAD/USD in small amounts. Yes, I agree that it does have an effect as CAD was going down at the time, but I'm waiting for the final verdict and calculation to see if that was really the case. I would expect that verdict would come privately, where I will try to let the community know about it without sacrificing my privacy.
Whatever the justification, I don't see how the approach taken by IB was even close to the correct one that should have been taken.