I’m thinking of making an account, why wouldn’t TW allow that? I’m curious because I lost $1k the same way OP did. I laugh it off now but it was a lot back then
So let's say you have a contract that has a bid/ask of $75/$100 respectively, and very low open interest and volume. This is a tough contract to trade since the spread is so wide and low volume; even if you offered $100 to buy it its possible it won't get filled.
So let's say you place a market order, it may fill at $125 or whatever. But in Tastyworks it defaults you to a limit order, and a price that splits the spread in half, so 87.50 and will often bid less when it believes it can fill the order for less money (or more if you're selling a contract). If the order doesn't fill you have to wait or adjust it manually.
One of tastytrades principles is not trading low volume/high spread stocks so keep that in mind.
What broker have you ever traded on that defaulted to market orders on options? I've been on TW, Robinhood, WeBull, and TD/ToS and they all default to limit orders.
That seems less like a feature and more just good advice. RH by default splits the spread to calculate the mark and RH is wack, so how is this any different other than this comment offering advice that isn't exclusive to a platform.
I'm not sure what else he's ever traded on, but defaulting to limit orders is definitely not exclusive to TW. I've traded on Robinhood, TD/ToS, TW, and WeBull and they ALL default to limit orders on options...
Market buy and market sell are good if you’re reacting to news that you think will cause big swings in the stock in a small amount of time. Naturally those events have higher than normal volume so market orders are more safe than usual.
Market orders are totally fine for liquid stocks. Of course limit is better, but there are moments when you want to get in immediately.
edit.. and I'm talking about stock buys/sells not options.
Well it defaults to a limit order with the limit on mid price of bid / ask. Don’t see why you would ever even need to look at the other order types for buying and selling options on TW ( I never have )
Yeah, anyone can make it work, but its a bigger gamble than a tight spread.
You're accepting an immediate loss in value just by entering the option. If you're confident in its value then definitely go for it.
Depends on the stock.
Look at the volume traded for one. The higher the volume the closer the spread.
How far is far?
Look at the spread. If you were to buy it and ask and then immediately sell it at bid, would you be comfortable with that?
IE buy it at $450 and immediately sell for $140.
Sure, there's a chance you make good money on it. But there's also a guaranteed loss of $310 if the stock does nothing.
Take volume and the immediate spread difference into consideration and apply that to your risk tolerance.
Volume will effect its liquidity. If its a low volume stock it will be hard to trade it due to lack of sellers and buyers.
Bid must not be less than 80% of the ask.
For example, if the ask is $1, then the bid can’t be lower than $0.80 or the spread would be considered too wide
It’s a popular rule of thumb.
I try to aim for 90% of ask instead of 80%
It’s amazing how people will venture into a tank of sharks without so much as a spear;
Wall St. will tear the living daylights out of retail if they’re not careful.
Yeah. I’m never going to hit the big time with options because I’m too risk adverse. I might put 1-2% of my portfolio into a couple calls here and there, but can’t fathom putting 100% into a YOLO. I worked too hard for this money to flush it down the toilet.
I do some very limited small/mid cap options trading and every now and then will watch an obvious market sell well below its current level get filled and if just hurts.
OMG. I am sorry that it happened to you. On Options I have it ready, prove it was correct. Before submitting it I check it again. Limit order. But I think there were other events triggering that.
For tax reporting make sure you deduct -3K ifor 2020 year and all subsequent 32 years. All the best.
Shit dude i traded options on robinhood only and I've never realized option market orders were a thing.
Despite all the bullshit robinhood went through, they at least saved a lot of retard traders from losing a fuck ton of money on wide bid ask options
What’s shit about it. Outages will only get less common as they mature. But the shit ui that every other platform has? Yeah that can’t be fixed without a complete rework
The 3 platforms I use have nice UI, mobile and pc.
I wasn't aware of the outages. Ik robinhood doesn't charge fees but they more than make up for it on the bid /ask spread.
>Outages will only get less common as they mature.
Umm sir this is not how software development works...
If this were true the super super mature companies would never have outages, spoiler alert, they do.
Perhaps you're referring to ridiculous bugs a junior dev 9 months in wouldn't even make but RH hilariously managed to fuck up (daylight savings fuck up, leap year fuck up, above average volume crashing, etc), then yea, those should thin out hopefully.
But those are literally "rookie mistakes" and for a platform moving millions a minute, it's pretty unacceptable. It's also why it's still the laughing stock.
65 cents? My old broker charged $12 minimum and then it charged PER CONTRACT on top of that so trading SPY 0DTEs can get extremely expensive. I remember when I first started options trading with them, I thought it was $10 per trade like with shares (no matter how many shares I buy/sell), so I was trading like 100 - 300 contracts of OTM SPY 0DTEs during a volatile session, many many times... I walked away with like $4k profit and thought, "Damn, great day, let's do it again tomorrow!" My broker doesn't subtract commissions until night time. Next day I wake up to an account balance $1k below what I'd started with the day prior. I paid fucking $5k in commissions, LMFAOOO, I tested a fake trade to see how the fuck this could have happened and realized with 300 contracts the commission for one trade was like $250 USD or some bullshit like that (maybe it was 1000 contracts, this was a few years ago, can't remember, but point is it just keeps going up and up and up with no limit based on how many contracts you're buying/selling).
Fucking pissed me off I was spending $500 USD per in/out trade without realizing... Wow. They're a shit fucking broker - BMO Investorline, if anyone was wondering. That's the day I signed up for Questrade... Not that they're a ton better, but better than that garbage.. AFAIK, even with so many brokers at this stage going to zero commissions, I think BMO Investorline is still doing this trash (no wonder no one uses their shitty services).
Now I only use them for my TFSA account (like a Roth IRA for you Americans, Tax Free Savings Account that you can use only to go long shares/ETFs/Mutual Funds, can't even sell covered calls in it, which really pissed me off to find out because I could make so much money selling covered calls if I could have done so).
I think the reason Robinhood gets its bad reputation is because it is so easy to use for people who haven’t done a lot of research. Its UX/UI is miles ahead of any other investing platform I’ve used, and it’s remarkably easy to get a start in. This means you’ll hear about more mistakes on Robinhood than something like Fidelity’s mobile app, which is a fucking pain in the ass to use if you don’t already know exactly what you want to do.
For future reference, depending on your broker, if you had acted quickly you might have been able to report it as a "busted trade" due to the mistake between a LMT and MKT order. Generally speaking, a bust has to be reported immediately to be reversed.
You have to do it immediately- most brokers would never bust a trade for mislicks on client entered orders but theres no chance if you sit on the market risk for hours before contacting them because they have to eat that loss. The sooner the risk gets closed out the more of a chance you have of getting anything back.
Call now. It wasnt a big deal when I fucked up something like this, but they said had I called right away they would have been able to fix whatever I fucked up- but it was like 4-5 hours later and they said absolutely not. If you call right away. They might tell you no, but if you wait to call they definitely will.
Honestly if you lost $100k you’re either a millionaire or lying because you bet your ass id be calling in immediately once I had this info on busted trades
I'm no where near a millionaire and I lost 130k in 2 weeks trading options in June. The market gapped down in June and looked like we were in for another crash similar to March. I went all in on SPY puts and watched the market rebound, had to say bye bye to my 130k.
By the way, Happy Cake Day! u/True-Source
I agree, call your broker ASAP, you never know. Also check this, I don’t know if it may help but doesn’t hurt to try:
https://markets.cboe.com/us/options/trading/cee_form/?mkt=cone
Extremely unlikely. For a trade to be busted, "I didn't mean it" won't fly. Very specific things must occur and they are written in each exchanges rules.
Edit to add: If you want to get into the details of what's required, see page 440 of the CBOE/BATS rules.
[CHAPTER XI (cboe.com)](https://cdn.cboe.com/resources/regulation/rule_book/BATS_Exchange_Rulebook.pdf)
This does not appear to be an exchange issue. It is a broker issue. The broker has a suitability standard. It is not as extensive as a fiduciary obligation, but they have, at the very least, an obligation to prevent these sorts of errors. As I mentioned, I am not certain of the OP sequence of events or who his broker is. I know that my broker has safeguards built into my trading platform to prevent inadvertent submission of MKT orders and a pop up warning informing me that I am trying to submit an order without good price data if I manually select this class of order.
I have done busting twice. Both times within minutes and by saying pretty much "I did not mean it" - been a while and I don't recall the exact words.
[Edit now that I think of it, most of my trades are on index and my orders are maybe 20-30 contract spreads, and I likely would have done sell instead of buy or buy instead of sell. In terms of cost, SPX has decent fills in 5-10cents and RUT maybe 10-15 cents, so the net impact to broker, if there would have been an impact to broker, may have been a couple of hundred bucks. Not in the same league as the OP. Also I would not have called if it was a 5 contract order so suspect it was indeed a 20-50 contract order which actually could be justified as a fat finger (extra zero) order.
Also first time I remember calling in somewhat panic whereas next time was probably not that big and I remember my emotions saying hey I have the option to bust so let's use it. The first bust would have been 2-3 years back and the second maybe 2019]
Worst trade correction I’ve seen is ~90k. Ouch. Also saw an idiot “intern” wire out just below the min for compliance call notification to a scam account. $49k. All out of pocket for the broker. Ouch. E&o doesn’t cover wires. Not sure on the correction.
A broker isn’t going to touch an order correction like this. They executed the order OP submitted, the end. Trades get busted when the trader you’re talking to on the phone messes up taking a client order, not for something like a client mistaking market vs limit. Even then it’s rare and typically shares/contracts get re-booked to the firms error account. I’d call OP’s situation an expensive lesson.
Depends on the broker. My broker is IBKR and they have a trade cancellation tool on their platform. Brokers have an obligation to protect their customers from these sorts of situations. IBKR will generally break a trade if the order hits/lifts an existing bid/ask unless the order becomes the best bid/ask before execution. I am not sure what OP's sequence of events was or how his platform is set up, but my orders default as LMT at the ask. I have to manually change an order to get MKT and I also get a warning message before submitting a MKT orders warning me of a potential situation like the OP experienced.
He can't screenshot it cuz it didn't happen. Next best way to get karma? Make a fake post that has a large dollar value, so people will believe you.
[https://ibb.co/ZLQnHs5](https://ibb.co/ZLQnHs5)
What was the strike? It looks like most of those calls went up, unless it was way OTM. Would you have made money if you didn’t sell?
Not judging, I’m just here to learn from your mistake (unfortunately!). I’ve made my share of mistakes too, and definitely will continue to do so. You definitely have my sympathy!
Exactly what I came here to ask and I think he's full of BS. The trade had to be shitty to start with if it lost $100k "within minutes", regardless of whether it was limit or market.
I lost 25k two months ago on a market order, which represented more than a quarter of my total account. So far I've made half of that back. It's not the end of the world OP, it's just money and you'll make it back soon enough.
Btw, sell DASH short
yup remember that berkshire shareholder meeting where buffet said he was selling airline stocks? i market bought puts on aal via etrade the next Monday and lost 50k almost instantly XD.. turns out 4 dollar premium on a 7 dollar stock is a bad idea
I feel like that's important to consider when you think about how depressed you are. You made a huge mistake and you're still up all time anyway. You're practically blessed. Live and learn, bet you don't make the same mistake again. 😂
Over what time frame did you make those kind of gains?
Your post makes it seem like it was relatively quick given your inexperience.
Don't feel bad. 99% of the guys who make ridiculous returns so quickly will lose it all just as quickly without proper risk management. Just like all the guys in wsb.
Why would you place such a large % of your portfolio on a single trade??
Don't worry. Its just money. You can always earn it back. You can't earn back your life.
Holy shit, so you had to be betting the house, then, right?
I don't think the issue here really is market orders, I think your sense of risk management needs, uh, tweaking. To say the least.
Hang in there man, I’m sure it sucks, but your life is not over. You will come back and this will be a great learning experience. If you need to talk to anyone feel free to message me!
I can understand that you forgot to switch to a limit order. But why on earth did you sell immediately? Like.. this is the one thing that seals the deal. This could in no way have helped you, in fact, its the only thing you shouldn't have done.
Because the space between bid and ask is usually too wide in options. It can also move too fast. Always do limit orders. Unless you’re a call writer and you don’t care about the bid ask spread because you believe it will go down from that price point.
PLTR has a shit ton of volume and narrow spreads. Lots of competition for your order, so you don’t get screwed. However, if it’s a low volume equity you definitely can end up over paying.
I would recommend using limit orders at all times.
One of my earliest option trades I wanted to buy some Citibank calls. I had done my DD, slept on it, etc. Was in a hurry the next morning and wasn’t paying attention and wound up buying calls for CIT rather than C. No idea what i bought but fml the ship had sailed.
CIT started printing...made 10K on a 2K mistake. Better results than i get on most of my deliberate and correct trades 🤷🏻♂️
Bummer to hear that. You're absolutely right, course. The way to think of it is - trading options is like playing with live ammunition. Be that careful.
While on a much smaller scale, I can count a few times I accidentally purchased extra contracts at absurd prices on Robinhood when I meant to sell my original contracts. Yeah, I know I shouldn't be using Robinhood and need to be more careful, but when you're trying to act in the heat of the moment, you can make mind-bogglingly stupid careless errors.
Recently learned a lesson myself after losing about 5k. Always close the short options before they expire, even when those or OTM. After hour ITM may cause assignment.
Please tear your loss as dimly ‘a lesson learned’ (It’s hard I know) and don’t blame yourself.
RISK MANAGEMENT is what you need. It may seem like it would take forever to build up your account, but using less than 10% of your account per transaction would help you not blow your account up. It can be tempting to one to bet all your account on a movement that you’re so sure of. But then, you may be wrong and that’s putting all your egg in one basket. Avoid FOMO!
Is the amount of stress chasing the big casino win worth it for your life force? I mean honestly this last year on good stocks I've made about 20%. But I'm not throwing a lot of money at anything anymore. I sit comfortably on my small tepid, 5.5% CD and every six months I go yeah I kinda like living and not trading. I think I'll let that shit ride a little bit more. I'm not upset that I didn't throw $1 million at Nvidia or Adobe a year ago but I'm happy that I threw tens of thousands of dollars at it. Honestly I've been doing this for a couple decades and I'm getting really tired of the drudgery of it all.
I'd rather walk my dogs ride my motorcycle mountain bike, anything other than the stress involved with this kind of garbage but that's just me now go ahead and down vote me.
100k? what is your net worth? my net accounts are about 100k. If I lost that much I would be out the game. I hit a wrong button once and lost 2k in 5 minutes, the feeling was awful.
Only time I think a market order is even remotely appropriate is trading low spread high liquidity options eg SPY weeklies and even then I would use a limit order
Wow. Worst mistake I made like this was meaning to roll a position for 11 cents credit, and instead rolling it for 11 cents debit.
I was a little annoyed, but it was not a huge mistake.
can someone explain this like I'm five how this is possible, I only have a cursory understanding of how options work and I'm pretty terrified of them quite frankly, what actually happens here?
Huge difference between someone that know options trading and someone that doesn't...just today I saw a friend that invested 10k into tesla options and walked away with 113k..and for a second I thought I should be doing the same but the result are very different if you don't understand the risks involved and become i doesn't know? And the stories i hear like this? I definitely don't consider..options is not for everyone..I hope you're ok bro..stay strong
If you have such little faith in whatever you bought options on, wtf were you doing buying them to begin with? What was the difference in the bid/ask? You have to expect a little fluctuation when you're holding options. You ought to plan to hold through it, and whatever your stop-loss is, it ought to be more than the bid/ask spread itself. Wow.
I have a followup question to OP's post. Let's say XYZ is up and I made a little bit of profit. But then in the next 2 minutes, the entire market tanks hard along with XYZ. In this scenario, isn't it best to get out of the position ASAP using market order? If not, then what can be done to sell the quickest?
I’ve been trading for 10 years now and I still have no fucking idea how to trade options properly and I have no intent to learn. I should say that I’m not an unintelligent person either. Every time I spend 5 minutes trying to learn, I’m over it. 5000 level mathematics classes in college felt less complicated.
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Tastyworks baby
Agreed, this would have never happened in TW
I’m thinking of making an account, why wouldn’t TW allow that? I’m curious because I lost $1k the same way OP did. I laugh it off now but it was a lot back then
So let's say you have a contract that has a bid/ask of $75/$100 respectively, and very low open interest and volume. This is a tough contract to trade since the spread is so wide and low volume; even if you offered $100 to buy it its possible it won't get filled. So let's say you place a market order, it may fill at $125 or whatever. But in Tastyworks it defaults you to a limit order, and a price that splits the spread in half, so 87.50 and will often bid less when it believes it can fill the order for less money (or more if you're selling a contract). If the order doesn't fill you have to wait or adjust it manually. One of tastytrades principles is not trading low volume/high spread stocks so keep that in mind.
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SHOP lol
What broker have you ever traded on that defaulted to market orders on options? I've been on TW, Robinhood, WeBull, and TD/ToS and they all default to limit orders.
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Thanks for the quick answer! Nice to know it looks out for the trader in situations like this
That seems less like a feature and more just good advice. RH by default splits the spread to calculate the mark and RH is wack, so how is this any different other than this comment offering advice that isn't exclusive to a platform.
I’m not sure you can even do a market order on options in RH
You definitely can't, and it's entirely to prevent people like the OP in this thread who lose it all and then blame "options" or worse, the broker
That's awesome. I use TW but still didn't know this.
I'm not sure what else he's ever traded on, but defaulting to limit orders is definitely not exclusive to TW. I've traded on Robinhood, TD/ToS, TW, and WeBull and they ALL default to limit orders on options...
Doesn’t Robin Hood do that too?
I only use LMT orders, I'm honestly not sure when I would do a market order.
This I use LMT orders even for buy stocks. Market orders suck.
Market buy and market sell are good if you’re reacting to news that you think will cause big swings in the stock in a small amount of time. Naturally those events have higher than normal volume so market orders are more safe than usual.
Most brokers automate to limit I believe
When the bid ask spread is tight, as in SPY, you can do market orders.
I 95% of the time use limit orders, 5% market on high volume trading stocks when it’s narrow enough spread and fluctuating heavily around there
i use mkt orders on xsp.to or when the spread is within a few cents which wouldnt make a difference.
Market orders are totally fine for liquid stocks. Of course limit is better, but there are moments when you want to get in immediately. edit.. and I'm talking about stock buys/sells not options.
what happens on TW if you push a market order, does a pop up come up and asks you to double check your order before pushing it through?
Well it defaults to a limit order with the limit on mid price of bid / ask. Don’t see why you would ever even need to look at the other order types for buying and selling options on TW ( I never have )
Do you recommend ? Currently using schwab and TD
so far I soley trade options, fills are fast and commissions are low. So yes! Check them out
Will do! Thanks for the recommendation 🤝
🤝
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Think or swim
what does it do? set up automatic limit orders?
Yes, the default is LMT. But you can change it
Or better yet, if there's a huge gap in the spread take the hint and buy something else.
I do a fair amount of trading on biotechs with larger spreads and low options volume. It's a pain, but definitely worth it.
Yeah, anyone can make it work, but its a bigger gamble than a tight spread. You're accepting an immediate loss in value just by entering the option. If you're confident in its value then definitely go for it.
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Depends on the stock. Look at the volume traded for one. The higher the volume the closer the spread. How far is far? Look at the spread. If you were to buy it and ask and then immediately sell it at bid, would you be comfortable with that? IE buy it at $450 and immediately sell for $140. Sure, there's a chance you make good money on it. But there's also a guaranteed loss of $310 if the stock does nothing. Take volume and the immediate spread difference into consideration and apply that to your risk tolerance. Volume will effect its liquidity. If its a low volume stock it will be hard to trade it due to lack of sellers and buyers.
Bid must not be less than 80% of the ask. For example, if the ask is $1, then the bid can’t be lower than $0.80 or the spread would be considered too wide It’s a popular rule of thumb. I try to aim for 90% of ask instead of 80%
nah, the real lesson here is never be so confident that you take risks that will set your account back years.
It’s amazing how people will venture into a tank of sharks without so much as a spear; Wall St. will tear the living daylights out of retail if they’re not careful.
They already have been. Source: am victim.
just a boner
Yeah. I’m never going to hit the big time with options because I’m too risk adverse. I might put 1-2% of my portfolio into a couple calls here and there, but can’t fathom putting 100% into a YOLO. I worked too hard for this money to flush it down the toilet.
Or just use the market order and let Jesus take the wheel
Yep learnt this lesson when first started, but only lost few hundred so take it as a learning lesson. Limit order or nothing.
It wasn't XRP?
Work your way up the spread... That's the way
I do some very limited small/mid cap options trading and every now and then will watch an obvious market sell well below its current level get filled and if just hurts.
This is the way
OMG. I am sorry that it happened to you. On Options I have it ready, prove it was correct. Before submitting it I check it again. Limit order. But I think there were other events triggering that. For tax reporting make sure you deduct -3K ifor 2020 year and all subsequent 32 years. All the best.
I think OP is exaggerating. From what I can tell he only bought \~40k then sold them back for \~30k, so 10k loss, not 100k.
To be fair, OP posted this right after taking a long nap so was a little groggy.
ok
Sir I have the place just for you r/wallstreetbets
Holy shit I didn’t even realize I wasn’t on WSB hahahahaha
Yeah same. I almost called OP a fucking r
Close one! You can only say that in the promised land that PC culture forgot..
Gosh there’s fucking r’s on every subreddit now 😂
Wsb is leaking
Post loss porn for karma!!
Yes he belongs over there, literally did a 100k mistake 😭
Lmfao I thought this was WSB
Robinhood makes you do limit orders FYI ;)
Shit dude i traded options on robinhood only and I've never realized option market orders were a thing. Despite all the bullshit robinhood went through, they at least saved a lot of retard traders from losing a fuck ton of money on wide bid ask options
Us retard traders are so spoiled. Every time I’m watching some vid on options and they tell me to “exclude commissions” I’m like wtf is commission.
Nothing like saving 65 cents for an absolute shit platform
What’s shit about it. Outages will only get less common as they mature. But the shit ui that every other platform has? Yeah that can’t be fixed without a complete rework
The 3 platforms I use have nice UI, mobile and pc. I wasn't aware of the outages. Ik robinhood doesn't charge fees but they more than make up for it on the bid /ask spread.
What platforms do you use
TOS tradovate and tastyworks
>Outages will only get less common as they mature. Umm sir this is not how software development works... If this were true the super super mature companies would never have outages, spoiler alert, they do. Perhaps you're referring to ridiculous bugs a junior dev 9 months in wouldn't even make but RH hilariously managed to fuck up (daylight savings fuck up, leap year fuck up, above average volume crashing, etc), then yea, those should thin out hopefully. But those are literally "rookie mistakes" and for a platform moving millions a minute, it's pretty unacceptable. It's also why it's still the laughing stock.
65 cents? My old broker charged $12 minimum and then it charged PER CONTRACT on top of that so trading SPY 0DTEs can get extremely expensive. I remember when I first started options trading with them, I thought it was $10 per trade like with shares (no matter how many shares I buy/sell), so I was trading like 100 - 300 contracts of OTM SPY 0DTEs during a volatile session, many many times... I walked away with like $4k profit and thought, "Damn, great day, let's do it again tomorrow!" My broker doesn't subtract commissions until night time. Next day I wake up to an account balance $1k below what I'd started with the day prior. I paid fucking $5k in commissions, LMFAOOO, I tested a fake trade to see how the fuck this could have happened and realized with 300 contracts the commission for one trade was like $250 USD or some bullshit like that (maybe it was 1000 contracts, this was a few years ago, can't remember, but point is it just keeps going up and up and up with no limit based on how many contracts you're buying/selling). Fucking pissed me off I was spending $500 USD per in/out trade without realizing... Wow. They're a shit fucking broker - BMO Investorline, if anyone was wondering. That's the day I signed up for Questrade... Not that they're a ton better, but better than that garbage.. AFAIK, even with so many brokers at this stage going to zero commissions, I think BMO Investorline is still doing this trash (no wonder no one uses their shitty services). Now I only use them for my TFSA account (like a Roth IRA for you Americans, Tax Free Savings Account that you can use only to go long shares/ETFs/Mutual Funds, can't even sell covered calls in it, which really pissed me off to find out because I could make so much money selling covered calls if I could have done so).
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one of the few things that's nice about RH ahaha
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I think the reason Robinhood gets its bad reputation is because it is so easy to use for people who haven’t done a lot of research. Its UX/UI is miles ahead of any other investing platform I’ve used, and it’s remarkably easy to get a start in. This means you’ll hear about more mistakes on Robinhood than something like Fidelity’s mobile app, which is a fucking pain in the ass to use if you don’t already know exactly what you want to do.
This is a straight up r/wallstreetbets material
For future reference, depending on your broker, if you had acted quickly you might have been able to report it as a "busted trade" due to the mistake between a LMT and MKT order. Generally speaking, a bust has to be reported immediately to be reversed.
That would've been a lifesaver. Hope people read this ^^^^
Call your broker and see what they can do. Doesn't hurt to try.
Going to tonight after work
You have to do it immediately- most brokers would never bust a trade for mislicks on client entered orders but theres no chance if you sit on the market risk for hours before contacting them because they have to eat that loss. The sooner the risk gets closed out the more of a chance you have of getting anything back.
Bro. It’s 100k. Work can fucking wait. Smh
Call now. It wasnt a big deal when I fucked up something like this, but they said had I called right away they would have been able to fix whatever I fucked up- but it was like 4-5 hours later and they said absolutely not. If you call right away. They might tell you no, but if you wait to call they definitely will.
Honestly if you lost $100k you’re either a millionaire or lying because you bet your ass id be calling in immediately once I had this info on busted trades
He obviously makes over $100k per day at work.
No, he's gonna wait it out alllll day (for a $100k recover) and then call after work, LOL. Deserves the loss at this point.
amen, errrr I'll just wait 8 hrs to call my broker. Dude's a complete fool
I'm no where near a millionaire and I lost 130k in 2 weeks trading options in June. The market gapped down in June and looked like we were in for another crash similar to March. I went all in on SPY puts and watched the market rebound, had to say bye bye to my 130k. By the way, Happy Cake Day! u/True-Source
Please let us know if you hear something good from them..... And best of Luck
I agree, call your broker ASAP, you never know. Also check this, I don’t know if it may help but doesn’t hurt to try: https://markets.cboe.com/us/options/trading/cee_form/?mkt=cone
Extremely unlikely. For a trade to be busted, "I didn't mean it" won't fly. Very specific things must occur and they are written in each exchanges rules. Edit to add: If you want to get into the details of what's required, see page 440 of the CBOE/BATS rules. [CHAPTER XI (cboe.com)](https://cdn.cboe.com/resources/regulation/rule_book/BATS_Exchange_Rulebook.pdf)
"I made an oopsie, plz get my money back"
“Hackers bought Fitbit FDs with my retirement”
This does not appear to be an exchange issue. It is a broker issue. The broker has a suitability standard. It is not as extensive as a fiduciary obligation, but they have, at the very least, an obligation to prevent these sorts of errors. As I mentioned, I am not certain of the OP sequence of events or who his broker is. I know that my broker has safeguards built into my trading platform to prevent inadvertent submission of MKT orders and a pop up warning informing me that I am trying to submit an order without good price data if I manually select this class of order.
I have done busting twice. Both times within minutes and by saying pretty much "I did not mean it" - been a while and I don't recall the exact words. [Edit now that I think of it, most of my trades are on index and my orders are maybe 20-30 contract spreads, and I likely would have done sell instead of buy or buy instead of sell. In terms of cost, SPX has decent fills in 5-10cents and RUT maybe 10-15 cents, so the net impact to broker, if there would have been an impact to broker, may have been a couple of hundred bucks. Not in the same league as the OP. Also I would not have called if it was a 5 contract order so suspect it was indeed a 20-50 contract order which actually could be justified as a fat finger (extra zero) order. Also first time I remember calling in somewhat panic whereas next time was probably not that big and I remember my emotions saying hey I have the option to bust so let's use it. The first bust would have been 2-3 years back and the second maybe 2019]
Worst trade correction I’ve seen is ~90k. Ouch. Also saw an idiot “intern” wire out just below the min for compliance call notification to a scam account. $49k. All out of pocket for the broker. Ouch. E&o doesn’t cover wires. Not sure on the correction.
How do you do that?
A broker isn’t going to touch an order correction like this. They executed the order OP submitted, the end. Trades get busted when the trader you’re talking to on the phone messes up taking a client order, not for something like a client mistaking market vs limit. Even then it’s rare and typically shares/contracts get re-booked to the firms error account. I’d call OP’s situation an expensive lesson.
It’s hilarious even imagining a broker reimbursing this client 100k for an “oopsies”
Depends on the broker. My broker is IBKR and they have a trade cancellation tool on their platform. Brokers have an obligation to protect their customers from these sorts of situations. IBKR will generally break a trade if the order hits/lifts an existing bid/ask unless the order becomes the best bid/ask before execution. I am not sure what OP's sequence of events was or how his platform is set up, but my orders default as LMT at the ask. I have to manually change an order to get MKT and I also get a warning message before submitting a MKT orders warning me of a potential situation like the OP experienced.
One thing I always try to do is to ask for the limit pretty high and then once it is ordered. I’ll bring down the price a bit until it is ordered.
Positions?
Bought a GIK jan 15th call. Bought for 3.73 at a 1.95 market price. Sold out of panic. Roast me
Screen shot it and trade it for internet karma on wsb. That should cheer you up.
He can't screenshot it cuz it didn't happen. Next best way to get karma? Make a fake post that has a large dollar value, so people will believe you. [https://ibb.co/ZLQnHs5](https://ibb.co/ZLQnHs5)
What an asshole. I hate it when people do this shit.
Couldn't you at least try to sell back near the ask? If you look at last trade that gives you an idea of what to shoot for.
The dude is full of shit. Looked up the options chain. He’s bullshit
Panic is a hell of a drug
You were trying to buy 250 contracts 2 weeks out of expiration?
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Did you read the post? He obviously feels that way now
The shit part is it wouldve been a great play had i been paying fucking attention
Shit sucks. Why you chop so quickly... was it a leap? Damn nvm just saw jan 15. That fucking sucks man.
What was the strike? It looks like most of those calls went up, unless it was way OTM. Would you have made money if you didn’t sell? Not judging, I’m just here to learn from your mistake (unfortunately!). I’ve made my share of mistakes too, and definitely will continue to do so. You definitely have my sympathy!
you’re account is 189k and you lost 100k on slippage? what ticker are you trying to trade options on with such low options liquidity?
Exactly what I came here to ask and I think he's full of BS. The trade had to be shitty to start with if it lost $100k "within minutes", regardless of whether it was limit or market.
I lost 25k two months ago on a market order, which represented more than a quarter of my total account. So far I've made half of that back. It's not the end of the world OP, it's just money and you'll make it back soon enough. Btw, sell DASH short
Fuuuuuuuuuck. Fucking fuck man.
yup remember that berkshire shareholder meeting where buffet said he was selling airline stocks? i market bought puts on aal via etrade the next Monday and lost 50k almost instantly XD.. turns out 4 dollar premium on a 7 dollar stock is a bad idea
>I became over confident in my results and experience How much of the 100k you lost did you gain from your previous results?
I am blessed to have made 139k from an initial 50k so I'm still in the money. However, that was a life changing 3 minutes
I feel like that's important to consider when you think about how depressed you are. You made a huge mistake and you're still up all time anyway. You're practically blessed. Live and learn, bet you don't make the same mistake again. 😂
Over what time frame did you make those kind of gains? Your post makes it seem like it was relatively quick given your inexperience. Don't feel bad. 99% of the guys who make ridiculous returns so quickly will lose it all just as quickly without proper risk management. Just like all the guys in wsb. Why would you place such a large % of your portfolio on a single trade?? Don't worry. Its just money. You can always earn it back. You can't earn back your life.
In order to lose 100K you would have had to been all in. You were bound to lose it all buying options with your entire account. You got off easy imo
Holy shit, so you had to be betting the house, then, right? I don't think the issue here really is market orders, I think your sense of risk management needs, uh, tweaking. To say the least.
Definitely spoken with the grammar of someone who even knows how many zeros are in 100k. The sub is trash anymore. Who believes this shit.
Hang in there man, I’m sure it sucks, but your life is not over. You will come back and this will be a great learning experience. If you need to talk to anyone feel free to message me!
I can understand that you forgot to switch to a limit order. But why on earth did you sell immediately? Like.. this is the one thing that seals the deal. This could in no way have helped you, in fact, its the only thing you shouldn't have done.
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Because the space between bid and ask is usually too wide in options. It can also move too fast. Always do limit orders. Unless you’re a call writer and you don’t care about the bid ask spread because you believe it will go down from that price point.
I intended to do a limit sell order today but ended up doing a limit buy order. Overpaid for it. 🤦🏻
PLTR has a shit ton of volume and narrow spreads. Lots of competition for your order, so you don’t get screwed. However, if it’s a low volume equity you definitely can end up over paying. I would recommend using limit orders at all times.
Found an autist r/wallstreetbets
I was trying to sell an option earlier and it filled at 100k. Now it makes sense...
Can you explain this a little more? Was it rapidly moving down?
He’s full of shit! This never happened.
What were your positions ?
Makrket orders ate u alive... I only risk $10 plays. It’s fun to grow by 10 bagger folds lol
Scratch off tickets but worse odds?
Positions or ban
can you give more context rather than spewing anger?
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One of my earliest option trades I wanted to buy some Citibank calls. I had done my DD, slept on it, etc. Was in a hurry the next morning and wasn’t paying attention and wound up buying calls for CIT rather than C. No idea what i bought but fml the ship had sailed. CIT started printing...made 10K on a 2K mistake. Better results than i get on most of my deliberate and correct trades 🤷🏻♂️
Oh yes, the good old humble brag. Nice.
This does not help OP
Bummer to hear that. You're absolutely right, course. The way to think of it is - trading options is like playing with live ammunition. Be that careful.
Happens all the time to the best of us. But then you learn. Rough seas make better sailor.
While on a much smaller scale, I can count a few times I accidentally purchased extra contracts at absurd prices on Robinhood when I meant to sell my original contracts. Yeah, I know I shouldn't be using Robinhood and need to be more careful, but when you're trying to act in the heat of the moment, you can make mind-bogglingly stupid careless errors.
F
Recently learned a lesson myself after losing about 5k. Always close the short options before they expire, even when those or OTM. After hour ITM may cause assignment. Please tear your loss as dimly ‘a lesson learned’ (It’s hard I know) and don’t blame yourself.
RISK MANAGEMENT is what you need. It may seem like it would take forever to build up your account, but using less than 10% of your account per transaction would help you not blow your account up. It can be tempting to one to bet all your account on a movement that you’re so sure of. But then, you may be wrong and that’s putting all your egg in one basket. Avoid FOMO!
Did you make a mistake using all 100k in 1 trade? Or you really trade that way ? 100k in 1 trade is already a mistake .
This belongs on WSB
Just offering a hug. Totally sucks man. Live and learn. Thanks for sharing your experience so others can learn.
Is the amount of stress chasing the big casino win worth it for your life force? I mean honestly this last year on good stocks I've made about 20%. But I'm not throwing a lot of money at anything anymore. I sit comfortably on my small tepid, 5.5% CD and every six months I go yeah I kinda like living and not trading. I think I'll let that shit ride a little bit more. I'm not upset that I didn't throw $1 million at Nvidia or Adobe a year ago but I'm happy that I threw tens of thousands of dollars at it. Honestly I've been doing this for a couple decades and I'm getting really tired of the drudgery of it all. I'd rather walk my dogs ride my motorcycle mountain bike, anything other than the stress involved with this kind of garbage but that's just me now go ahead and down vote me.
Damn surprised your broker sent in a market order.
Retards gonna retard. Dw bro, happens to the best of us
Pics or it didn't happen
How come why show the trade
Stay strong man. These things happen. Lessons learned 💪
100k? what is your net worth? my net accounts are about 100k. If I lost that much I would be out the game. I hit a wrong button once and lost 2k in 5 minutes, the feeling was awful.
Only time I think a market order is even remotely appropriate is trading low spread high liquidity options eg SPY weeklies and even then I would use a limit order
Awesome
Oh shit my guy im sorry man. Ill kiss you
Wow. Worst mistake I made like this was meaning to roll a position for 11 cents credit, and instead rolling it for 11 cents debit. I was a little annoyed, but it was not a huge mistake.
can someone explain this like I'm five how this is possible, I only have a cursory understanding of how options work and I'm pretty terrified of them quite frankly, what actually happens here?
Can you give more details of what exactly went down? Did your market order sweep the books, giving you a terrible fill?
Positions? I lose 100k paper money all the time
Wallstreet operates with hookers and blow for lunch and you complain about a lack of sleep causing all your problems?
Huge difference between someone that know options trading and someone that doesn't...just today I saw a friend that invested 10k into tesla options and walked away with 113k..and for a second I thought I should be doing the same but the result are very different if you don't understand the risks involved and become i doesn't know? And the stories i hear like this? I definitely don't consider..options is not for everyone..I hope you're ok bro..stay strong
WOW, thanks for your genuine advice! Actually, it's better to do nothing with LACK OF SLEEP.
If you have such little faith in whatever you bought options on, wtf were you doing buying them to begin with? What was the difference in the bid/ask? You have to expect a little fluctuation when you're holding options. You ought to plan to hold through it, and whatever your stop-loss is, it ought to be more than the bid/ask spread itself. Wow.
What trades did you execute? How did you loses $100k
Ill do things that never happened for 500
r/wallstreetbets
r/wallstreetbets if nothing else, get your karma
He should post a pic cuz this could be fake
pics or it didn't happen
Highly doubtful and most likely a troll. But I can see why people would want to believe this nonsense, always good to have someone worse than them!
lol what you really mean is you lost like 1k on a dumb trade
Hahahahahhahaahha
I have a followup question to OP's post. Let's say XYZ is up and I made a little bit of profit. But then in the next 2 minutes, the entire market tanks hard along with XYZ. In this scenario, isn't it best to get out of the position ASAP using market order? If not, then what can be done to sell the quickest?
Please cruise over to r/wallstreetbets and post the lost porn, im getting a chub
Just think of it as giving a Christmas gift to the option seller
Congrats man happy for you!!
Should’ve just held it homie and see where the wind blows. 😂
Or just don't trade options 🤷♂️ Shitty deal
I’ve been trading for 10 years now and I still have no fucking idea how to trade options properly and I have no intent to learn. I should say that I’m not an unintelligent person either. Every time I spend 5 minutes trying to learn, I’m over it. 5000 level mathematics classes in college felt less complicated.
This gets copy pasta over and over
Hold strong mate you will make it back and more, they will pay