Did i get scammed?

Discussion in 'Options' started by stock_trad3r, Dec 27, 2013.

  1. My broker got back to me and indeed he did confirm it was a no-win trade. My max 'profit' is -$120. What a joke but with TWTR so far from $68.5 it wouldn't matter anyway . I wound be nice if there were safeguards to prevent this from happening because someone in a hurry may place a losing trade and and not realize it if the bid/ask spreads are too wide..The order execution system shouldn't prompt people to place trades that cannot win, so if the spread is 50 cents you cannot get an order filled with a debit spread of more than 49 cents. Ameritrade 'recommended' I execute the order with a 60 cents debt. Obviously it was stupid on my part to not not adjust it below 50 and deceptive/careless on their part to allow the order to be processed anyway. Lesson learned.



    TWTR is down but I have been selling covered calls and my TRYUSD long has netted me 40% , so 'm only down about a few k on the overall account since I began buying.
     
    #31     Dec 31, 2013
  2. i dont get it, did you just put the trade on with fingers crossed? every other person on this forum ( i think? ) would have checked the spread on the bid ask, and the max profit of putting a trade on, at the least
     
    #32     Dec 31, 2013
  3. FXforex

    FXforex

    When the debit is $0.56 on a 68.0/68.5 debit spread you do not need your broker to confirm it was a no-win trade. The debit is greater than the strike difference.

    You should study Options 101.
     
    #33     Dec 31, 2013
  4. We all make silly mistakes, perhaps it's one of those moments.
     
    #34     Dec 31, 2013
  5. I placed a trade in a hurry..only later did I notice I erred

    should have paid closer attention and
     
    #35     Dec 31, 2013
  6. Maybe you would lend him your copy after you're done. The thing was a paper-trade as shown on the blotter. What's all this BS about talking to the broker. The guy is an admitted troll.
     
    #36     Dec 31, 2013
  7. SIUYA

    SIUYA

    LOL - that would be nice, for certain 'reminders'
    Or
    people could learn how instruments work before hopping behind the wheel.
    Or
    ensure that there are checks and balances to minimise fat finger errors, and they are turned on, that they understand liquiidty and at market trade issues etc etc etc
    Or
    cop it sweet when they dont bother to do all of the above or short circuit it, and expect someone to bail them out.

    ........
    troll or no troll.
     
    #37     Jan 1, 2014