TASR trade busted on ISE!!!!!!
- Thread starter heilbronner
- Start date
locked: national best bid=national best ask
crossed: national best bid>national best ask
http://www.iseoptions.com/legal/pdf/rules.pdf
see rule 720 for obvious errors
crossed: national best bid>national best ask
http://www.iseoptions.com/legal/pdf/rules.pdf
see rule 720 for obvious errors
Locked means that two or more exchanges are showing the same price on the bid/ask. For example:
Bid Exch Ask
==========
.75 AMEX .80
.80 CBOE .85
.70 PHLX .80
.75 PSE .85
.75 ISE .85
.75 BOX .85
In this case, the CBOE is locked with the AMEX and the PHLX.
Crossed means that two of more exchanges has a price that has a higher bid than the ask on another exchange(s.) For example
Bid Exch Ask
==========
.75 AMEX .90
.75 CBOE .90
.70 PHLX .80
.75 PSE .80
.85 ISE .90
.70 BOX .90
In this case, the ISE is crossed with the PHLX and the PSE.
Some people use the terms crossed and inverted respectively.
nitro
I feel your pain. This has happened to me before with OEX options. Here is the thread http://www.elitetrader.com/vb/showthread.php?s=&threadid=2565
this was probably an erroneous trade. You bought the puts at $13.60 at 9:58:02
There were $15, $15.20 prints around the same time.
If you read the obvious error rule (720) you will see that if you buy .80 lower than the theoretical value (for options priced from $10-$20) than the trade can be deemed erroneous. I don't have the best bid at the time but based on the trades that took place it appears that you probably bought ($13.60) when the national best bid was at least $14.40 bid.
You should always be concerned when it is "this good". BTW the ISE actually has the best bust policy. You should see what the PSE/AMEX/CBOE can bust.
know the rules..............
There were $15, $15.20 prints around the same time.
If you read the obvious error rule (720) you will see that if you buy .80 lower than the theoretical value (for options priced from $10-$20) than the trade can be deemed erroneous. I don't have the best bid at the time but based on the trades that took place it appears that you probably bought ($13.60) when the national best bid was at least $14.40 bid.
You should always be concerned when it is "this good". BTW the ISE actually has the best bust policy. You should see what the PSE/AMEX/CBOE can bust.
know the rules..............
I am sorry for what has happened to you heilbronner. I would be going nuts over the phone with IB and ISE if that happened to me. This is theft pure and simple, I am just surprised it doesn't come from CBOE or another open outcry exchange. I am glad I don't trade options.
Com'on how can someone who trades options among many other instruments know about the details of all these rules for each exchanges. No I am telling you options exchanges are a scam .
Com'on how can someone who trades options among many other instruments know about the details of all these rules for each exchanges. No I am telling you options exchanges are a scam .
I can't say, as I only use smart order routing from IB. I didn't follow the prices on every single exchange, maybe I should do so.
The bid from IB was well above my limit buy order.
You are an expert in option trading. Thanks for the hints.
Yes, probably my limit order was out of that range, but I didn't invite anyone to trigger it. Do you think it's possible that a local triggered my order well aware of the fact that he can bust it anytime in the future? IMHO there is no idiot around who sells at a very unfavorable price when there are lots of higher bids around.
Happens all the time on CBOE. First time heard it is ISE. Makes me wondering if this is IB all the way along.
Out of volatility range? Bullshit. You were setup and screwed, and "they" spit on you "Fu*k you pay me". I am sorry it happened to you.
Out of volatility range? Bullshit. You were setup and screwed, and "they" spit on you "Fu*k you pay me". I am sorry it happened to you.