This sux. Silicone implant trade gets busted!

F

frank99

This past Friday, the FDA lifted a ban on silicone implants.

So, this morning shortly after open, I purchased 1 AGN call option. I got confirmation that it FILLED, and as the option was increasing in value, my liquidating value was increasing nicely.

About 20 minutes laterI get a Cancelled message and my trade was Withdrawn and erased like it never happened. The money was taken out of my account.

There was no history of the trade in my account, other than something showing that it was cancelled.

I called the broker, and they said that the Boston exchange "busted" it and said that the options should have never traded at that low of price. It took the help desk a while to confirm that I did place the trade and they apologized that this happened and said that this is rare but unfortunate.

Has this ever happened to anyone else?


Frank
 
Quote from frank99:

This past Friday, the FDA lifted a ban on silicone implants.

So, this morning shortly after open, I purchased 1 AGN call option. I got confirmation that it FILLED, and as the option was increasing in value, my liquidating value was increasing nicely.

About 20 minutes laterI get a Cancelled message and my trade was Withdrawn and erased like it never happened. The money was taken out of my account.

There was no history of the trade in my account, other than something showing that it was cancelled.

I called the broker, and they said that the Boston exchange "busted" it and said that the options should have never traded at that low of price. It took the help desk a while to confirm that I did place the trade and they apologized that this happened and said that this is rare but unfortunate.

Has this ever happened to anyone else?


Frank
More...
Yes. Happened to me on a WBC (ASX) trade a while back. Broker very apologetic but busted the trade anyway - would have been a nice profit. I suspect (but am not certain) that trades only get busted if they're in your favor :).
Daddy's boy
 
Love the thread title.

Options aren't supposed to trade when the underlying hasn't yet opened on its primary exchange. Listed stocks often open late when they're making a big move (some stocks, like OIH, open late almost every day). Sometimes options erroneously trade during this time, priced based on whatever the underlying is trading at on the ECNs. They may or may not bust the trade, depending on how much of a discount you got.

It looks like AGN opened around 9:33 on Nov 17.
 
I also wonder if they would have busted the trade if it went down in value. So, is it the broker that busts the trade or the exchange?

Thanks,

Frank


Quote from daddy'sboy:

Yes. Happened to me on a WBC (ASX) trade a while back. Broker very apologetic but busted the trade anyway - would have been a nice profit. I suspect (but am not certain) that trades only get busted if they're in your favor :).
Daddy's boy
More...
 
Loufah,

Thanks. I traded after 9:33AM EST. It had definately opened when I placed the trade. They said it was due to bad data that the exchange had.

Oh well. I'm more over it this morning.

I FINALLY had a winning trade, and then they busted it. So, I was just a little disappointed.


Frank

Quote from loufah:

Love the thread title.

Options aren't supposed to trade when the underlying hasn't yet opened on its primary exchange. Listed stocks often open late when they're making a big move (some stocks, like OIH, open late almost every day). Sometimes options erroneously trade during this time, priced based on whatever the underlying is trading at on the ECNs. They may or may not bust the trade, depending on how much of a discount you got.

It looks like AGN opened around 9:33 on Nov 17.
More...
 
I had a trade busted that was out of favor once. Went to take an offer after hours and just missed it, ended up taking one 10 points higher because of the lack of liquidity. Nasdaq deemed it clearly erroneous and broke it.
 
That's good to know that they are consistent both ways at least.

Quote from surfininmyroom:

I had a trade busted that was out of favor once. Went to take an offer after hours and just missed it, ended up taking one 10 points higher because of the lack of liquidity. Nasdaq deemed it clearly erroneous and broke it.
More...
 
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