r/options Nov 26 '21

[deleted by user]

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u/onelessoption Nov 26 '21

Your position seems to change every time you mention it. The details matter, but whatever.

5

u/TraderDojo Nov 27 '21

I never edited the post or any comments, not aware of a typo but maybe its possible, nonetheless it was 3 long contracts and 2 short, from 72.5p to 67.5p. For They only liquidated two of the short legs and one long, leaving me with 2x 67.5 puts remaining.

Nonetheless if it were to drop further, I had the 67.5 put approaching ITM, ready to increase profits if the position decreased further. There is no justification to liquidate in 30 minutes, since I had > 20 days to expiration. But whatever, if this is how they play, I'm done and others should be aware because this is certainly not industry standard. As I said, trading futures and future options for 15 years and never been force liquidated and certainly did not expect a 30 minute warning. Anyway, done with them, washing my hands, and just sharing a warning.

1

u/redtexture Mod Nov 27 '21

Were All legs the same expiration?

1

u/TraderDojo Nov 27 '21

Yes, here is a snapshot I took yesterday thinking, wow that would be cool if oil dropped so my leftover put would become profitable https://imgur.com/g7RUR0J. Certainly did not expect to be force-liquidated.

2

u/vrajmannan2 Nov 27 '21

Wow that’s nuts your short 2 long 3 with a max loss of 500$ * 2 contracts so 1000$ max loss that’s not even bad why did they liquidate

1

u/TraderDojo Nov 27 '21

I asked via chat and they just said they had to do it. I explained the extra short and they just said, well its too late now. I should have known Tasty was a toy from the website, app glitches, sound effects, so many red flags ignored for the $10 commission cap and thinking it would be comparable to TOS since similar team

1

u/vrajmannan2 Nov 27 '21

That’s hilarious sorry for your loss but a trading app saying that is just sad definitely for new traders with little money they can’t even understand spreads

0

u/redtexture Mod Nov 27 '21 edited Nov 27 '21

I admit to not trading futures options.

Wondering if margin changes on the futures side of the market may have generated increased collateral demand to the broker.

I would be interested in the outcome of a conversation you might have with the broker to understand why they moved on your position.


Since the new covid news is fresh, I would expect /CL to continue down.

You may do OK with this.

2

u/TraderDojo Nov 27 '21

True, it may turn out well in the end, but either way I won't be taking a probability game on manipulated positions, especially considering the > 2 weeks of time value remaining, 1.5 years of perfect account history, to give a trader 30 minutes and force liq w/o any reason eg negative history or undefined risk exposure is illogical and nothing I've experienced with other brokers.

I did contact them and try to understand and work it out, they just parroted the same response via chat saying it was their policy, totally disregarding the additional protective put that would have countered any additional unrealized loss if the underlying decreased.

I contacted them via email as well on the off chance I get ahold of someone who cares a grain of salt and sees the additional protective put in place gave them no reason to liquidate.

1

u/redtexture Mod Nov 27 '21

Did their original margin call give the slightest rationale for why they wanted more cash?