Very Profitable Position Force Liquidated After 999% House Maintenance Margin Met

[zdreg]

I've seen stuff like this before. Had something silimiar happen to me and a friend of mine many years ago.

My friend got taken for $40M, fought it and lost. I didn't even try.

I suggest you just let it go. The legal system isn't designed for cases such as this to be won.

times are different. it is difficult but the odds are much better then in the past. i bet your story is an interesting one. please post details.

 

[JackRab]

My 2 cents...

I went over some candidates and I don't see any stock that could be the one he is trading in.

It can't be too low, since than calls that far OTM wouldn't get that value.

Also, he has a put which is valued at about 75. That could mean it's an ATM/around ATM put... but then the stock would trade too high for there to be calls that far OTM. So it is a deep ITM put....

So likely IMO, it's an underlying trading around 10, maybe a bit higher... with very high IV in 1year options... 80-upwards....

That has to be options on leveraged long VIX ETFS.... 2x or 3x. That moves... they came down a lot, so there are far OTM calls, which still have a decent value...
That would definitely be a good reason for Etrade to close down the position... they could be at risk for tens of millions.

 

[Ghost_of_Blotto]

Yes, it was liquidated in part in a very large lot in a market order as a buy to close.

That's your answer. Think through the implications and ask yourself why you'd be allowed to win.

I've seen stuff like this before. Had something silimiar happen to me and a friend of mine many years ago.

My friend got taken for $40M, fought it and lost. I didn't even try.

I suggest you just let it go.

Always impressed by your humility and commitment to rational choices.

If I recall you were around the same age as the OP when it happened to you, and it seems he doesn't have your institutional background. Maybe you could elaborate a little privately so as to reduce the chances that he'll follow his conditioning to fight in the way the system teaches, e.g. lawyers and the media, egged on by those with a naive view of how power works.

If you're inclined, and perhaps this isn't the right forum, I'm sure many would benefit from reading your thoughts around developing humility, controlling ego, and making rational choices according to facts/evidence. It seems to be emotionally difficult for many, and with society evolving in a way which greatly reduces the opportunity to overcome genuine challenges in the formative years, lots of decent smart people will fail to reach their potential.

The legal system isn't designed for cases such as this to be won.

Designed. Yes. The OP should ponder why you chose that word.
Most aren't ready to accept the reality of the extensive control imposed on all of us.