Why was I stopped out?

P

probe1957

Can one of you experts please look at this option:

GLD_091711P175

and tell me how I could have been stopped out at $2.22 at 8:30 this morning?

My stop was $6.80. Now I know it is possible for the price to slide right through a stop but I can't see where this option traded anywhere close to $2.22.

Thank you for your time.
 
Days range $2.22 - $7.10
http://finance.yahoo.com/q?s=GLD110917P00175000


Screenshot.png
 
Wow. Thanks but still, wow.

What lesson can I learn here? Not to put stops on options? Not to leave that stop in place overnight?

The daily chart in TOS doesn't show that option ever trading today below $5.65 or so, so I was really confused.

That is an expensive lesson, whatever it was, but I have had more expensive ones.

Thanks for your help.
 
Looks like your 1 lot on the PHLX was a bad print. The only thing I can think of is that they on the opening put out stub quotes a way from the market and your stop was triggered. Was it a stop or a stop limit? I would call your broker and have the print adjusted to the trade right before your print of 22 @ 6.10 on the PHLX. Looks like the AMEX also did the same thing with prints of 1 @ 2.3 and 10 @ 3.7.
 
Quote from probe1957:


What lesson can I learn here? Not to put stops on options?
More...

+1

Use S-limits; at least a limit of 5.00 would've been filled. Best to avoid stops on options altogether.
 
Quote from probe1957:

Wow. Thanks but still, wow.

What lesson can I learn here? Not to put stops on options? Not to leave that stop in place overnight?

The daily chart in TOS doesn't show that option ever trading today below $5.65 or so, so I was really confused.

That is an expensive lesson, whatever it was, but I have had more expensive ones.

Thanks for your help.
More...

Hopefully that wasn't your entire account on the line. But when I place stops on options, I always do limit orders, even if the limit is not near my stop. Like, the order goes through if price is below X, but I won't accept less than Y amount for the option. So, for this trade, set a stop if the price goes below 6.8, but have a limit of 6.6, so even in a very fast move you'll get no less than $6.60, and in most cases $6.79 or $6.80.
 
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