Trading Halt

Empresario__ · May 25, 2012

What kind of orders are accepted during a trading halt? Can one buy options or are they halted as well?

Don Bright · May 25, 2012

Quote from Empresario__:

What kind of orders are accepted during a trading halt? Can one buy options or are they halted as well?

In my experience, if the underlying is halted, the options are as well.
Wouldn't be "fair" otherwise, right? With both deep ITM calls and cheap OTM calls and puts, would negate the reason for the halt.

Don

Rationalize · May 25, 2012

Possible to replicate with an index future, based on the market cap of the halted stock, and your ability to short all the others

FrankSlaughtery · May 26, 2012

confirmed options are halted as well when ul is halted for obvious reasons mentioned above.

ChkitOut · May 26, 2012

I think trading halts should be banned. Its unfair if I own a stock, quickly see bad news and am in a position to get out with a small loss as opposed to a halt then gap down 40%. Its total bulldung.

Dura · May 26, 2012

What's a trading halt.? When do they a occur?

FrankSlaughtery · May 27, 2012

Quote from Dura:

What's a trading halt.? When do they a occur?

a trading halt is when a security is "halted" meaning no one can trade it or any deriv of it (e.g. options). it occurs when there is pending news such as an fda decision, lawsuit, investigation, etc.

Dura · Jun 7, 2012

Quote from FrankSlaughtery:

a trading halt is when a security is "halted" meaning no one can trade it or any deriv of it (e.g. options). it occurs when there is pending news such as an fda decision, lawsuit, investigation, etc.

Oh, I see. Thanks for the reply. Is this something that happens often?

sledgeyum · Jun 7, 2012

Quote from ChkitOut:

I think trading halts should be banned. Its unfair if I own a stock, quickly see bad news and am in a position to get out with a small loss as opposed to a halt then gap down 40%. Its total bulldung.

Would be nice if u were short..