Why was I stopped out?
- Thread starter probe1957
- Start date
It wasn't my entire account by any means but the loss was well beyond my risk tolerance. I try to limit my loss on a trade to $500 max. I thought I had set this trade up for a max loss of $375.
If I had known I was going to lose $800 on a trade that cost me $1050 to enter, I would have just let it ride and see if it comes around before expiration.
It certainly looks like I have no complaint with TDA, from what you guys are telling me, which is what I suspected. It looks like I just set the trade up wrong.
Thanks for your help folks.
A follow up.
I just got off the phone with TDA customer support who checked with a market maker who determined it was some kind of error. They are going to credit my account the difference between where the order actually triggered and where it should have triggered.
So my account will be credited $458. Not a lot of money but it is a lot when it is mine.
Once again, my thanks to everyone who responded.
I just got off the phone with TDA customer support who checked with a market maker who determined it was some kind of error. They are going to credit my account the difference between where the order actually triggered and where it should have triggered.
So my account will be credited $458. Not a lot of money but it is a lot when it is mine.
Once again, my thanks to everyone who responded.
Quote from probe1957:
There is very little risk now that I am stopped out of the trade.
Yes I'm aware that you got stopped out. Based on the 175 puts being bought at $10.50 the 170 puts probably could have been sold for $7.00 when you bought the 175 puts. Maximum risk $350.00, maximum profit $500.00 - no risk of getting stopped out early.
Something to consider for future trades.
I am well aware of verticals and I trade them often. I didn't do a vertical in this case because I was so sure I was right that I didn't want to limit my upside potential. I am never more wrong than when I am absolutely certain I am right.
Unless I am mistaken, and I may well be, your math isn't quite right. As I understand it, my max profit on a vertical as you described would have been the difference between the two strike prices less the cost of the trade. So again, unless I am mistaken, my max profit would have been $150 had I done the trade as you suggested.
I am still learning this so please feel free to correct me if I am wrong. And feel free to use bold and/or colored fonts. I rather like that. It arouses me.
Red is the universal forum ALARM color. It's only used during high-impact discussions or in case of forum fire. I don't smell any smoke, so I think we're ok.
Don't let computational-errors take you away from the THRUST of the discussion. Don't be led astray. Stay on point.
Red is also the first chakra color, hence your state of arousal. Just a FYI.
Don't let computational-errors take you away from the THRUST of the discussion. Don't be led astray. Stay on point.
Red is also the first chakra color, hence your state of arousal. Just a FYI.
Wow, one phone call and resolved, I must say I am impressed. One important thing a broker must have is to quickly resolve & reimburse for mistakes, it seems TDA does a great job in that regard. I know some brokers would have given you hell untill you see a credit from them (especially if they are the MM themself..)
FWIW, BBG still showing prints of 2.30 and 2.22 at 9:30:01, mixed in with prints of 6.10, 3.70, 6.05.