Liquidation disaster

pcwSg
2023-04-01

Using Tiger for 0DTE option buying strategies, just to speculate when i have a strong view on the market and if the premium is reasonable. [Allin] [Allin] 

Bought a SPY 408-409 CALL spread for 0.07 (0.15-0.08), expecting the market to continue creeping upwards. [Call] [Call] 

However, it got liquidated for 0.30 (0.67-0.37) when it would have been a full 1.00 profit at expiration since SPY closed above 409. [Facepalm] [Facepalm] 

The worse part, it also sold off my auto-invest position in $Devon(DVN)$  [Helpless] [Helpless] 

Seems like just parking small money in a small Tiger account to speculate is a bad idea... Auto liquidating all my assets may be a sign too...

Been participating in community events mainly for Tiger gifts, got 1 towel for sacrificing sleep and being first to find one of the HAPPYCNY cards. [Spurting] [Spurting] 

Guess enough losses has been made...

Time to focus on what makes money instead of burning money here... [Blush] [Blush] 

Facing the losses, nearly $9k SGD in losses in total

Just for memories sake, would let it freefall from here on out.

Still, would be actively looking out for promotions, just no more community events and trading here...

Hope to see an event worth writing about soon [Wow] [Wow] 

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Comments

  • Yonhuat
    2023-04-01
    Yonhuat
    这是给你的。在收盘前1小时,价格越过你的期权看涨期权大关。清算是自动的,因为帐户不能进行股票购买,因为它去ITM
    • SullivanRrr
      所以你还是在这笔交易中赢了钱?你的看涨期权价差成本是0.07(0.15-0.08),而它被清算为0.30(0.67-0.37)...我说的对吗?😳@pcwSg
    • pcwSg
      是的,要明白这是经纪人的权利,并防止波动性带来的负余额和可能的坏账...小账户和玩火的苦恼[Facepalm][Facepalm]
  • LMSunshine
    2023-04-13
    LMSunshine
    Curious…so is it an app issue that your options got liquidated and your Auto-Invest Devon got sold off? I‘ve never had my Auto-Invest stock being sold off but have whole loads of other app bugs
    • pcwSgReplyLMSunshine
      its fine, just some small money, not big issue.
      dont think they will "replace" the shares per se... likely they will just explain why they liquidated it.
      but still hope the liquidation process can be improved to not affect other positions
    • LMSunshineReplypcwSg
      Then did you contact customer service for help? If they made a mistake, shouldnt they replace your Devon shares?
    • pcwSg
      the liquidation of Devon is not logical, they should not touch and auto sell my other positions, they should only auto close my 408 and 409 option contracts
    • pcwSg
      therefore, they sold 408 contract at market price, and bought back the 409 contract at market price, for nett 30USD.

      if they didnt liquidate my positions, the 2 contracts would be worth 100USD at the end of the day

    • pcwSg
      short story long...
      it got liquidated because i dont have enough money to support the option exercise if SPY stayed between 408 and 409.

      i would need 40k USD to support the exercise

  • NiceOne
    2023-04-01
    NiceOne
    Quite an extraordinary analysis, man. You're amazing!
  • ChrisColeman
    2023-04-01
    ChrisColeman
    Do you think trading options is suitable for new investors?
    • EatmiReplypcwSg
      同意你的说法。
    • pcwSg
      would say buying options blindly will always lead to 100% loss.

      selling options would be a good idea for new investors to get used to how options work, but selling only tight spreads and/or with proper stop losses in place to prevent big losses would be my advice for new investors.

  • WernerBilly
    2023-04-01
    WernerBilly
    Yeah, you are right. Liquidity is a big issue.
  • Eatmi
    2023-04-03
    Eatmi
    Learning about investment strategy
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