Can someone out there help me?
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I have an unusual occurrence, involving May Sugar Options.
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I purchased 10 sugar call options with a 16.00 strike price on December 27, 2006. I also sold 10 sugar puts with an 18.00 strike price. On Jan. 23, 2006, I ordered liquidation of all of my positions. Sugar was trading at about 18.00. I was contacted that the trade was completed and the profits were shown as deposited into my account.
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Two days later, the money from this transaction was removed from my account. I contacted my broker on the following day and he said that since there was so much activity on the trading floor on the day that our transaction took place that when they went to match the tickets to the sales two days later that my ticket did not show as having been filled correctly. He also told me not to worry that the firm was fighting on my behalf and that they had about $250,000.00 in problems involving sugar on the same day. I was told that the problem would be resolved within 24 hours, and that he would contact me as to the result. He said that often times they negotiate a settlement between the firm and the trading company in New York, and that they would offer me approximately 80-90 percent of what I actually should have settled at. Several days have gone by and now my broker is saying that although the situation has not been figured out, that I should be ready to lose the entire amount, “even though we won”.
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My questions are as follows:
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1.***** Am I correct in assuming that either the order was executed, or I should still own the options, which are still way in the money?
2.***** Is it even possible that two days later; when they tried to match tickets to actual transactions, that it was discovered that my trade (sale of deep in the money options) sold for nothing, and therefore I lost my initial investment and all profits?
3.***** My broker has offered NO paperwork involving this transaction, and simply just keeps reasserting that they are doing all they can to fight for me. However, could he actually be scamming me?
4.***** Is this a common scam?
5.***** Who does a client contact to have this matter looked into?
6.***** How do I know whether the problem is with my broker, or on the trading floor in New York?
7.***** What paperwork do I request, and who do I contact to get access to it?
8.***** Am I correct in assuming that I should either own the call options or the profits which they generated on that date, and therefore time is of the essence in case the market moves against current value of the options?
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I am relatively new to the market, and this is the first transaction in which I have used this broker, and this company. Can someone out there point me in the right direction, or let me know if I am wrong for even assuming that something “fishy” has gone on. One last note is that on looking at option sales on the day in question there is no indication that there were any sales for, or anywhere near zero dollars.
*
*
*
I have an unusual occurrence, involving May Sugar Options.
*
I purchased 10 sugar call options with a 16.00 strike price on December 27, 2006. I also sold 10 sugar puts with an 18.00 strike price. On Jan. 23, 2006, I ordered liquidation of all of my positions. Sugar was trading at about 18.00. I was contacted that the trade was completed and the profits were shown as deposited into my account.
*
Two days later, the money from this transaction was removed from my account. I contacted my broker on the following day and he said that since there was so much activity on the trading floor on the day that our transaction took place that when they went to match the tickets to the sales two days later that my ticket did not show as having been filled correctly. He also told me not to worry that the firm was fighting on my behalf and that they had about $250,000.00 in problems involving sugar on the same day. I was told that the problem would be resolved within 24 hours, and that he would contact me as to the result. He said that often times they negotiate a settlement between the firm and the trading company in New York, and that they would offer me approximately 80-90 percent of what I actually should have settled at. Several days have gone by and now my broker is saying that although the situation has not been figured out, that I should be ready to lose the entire amount, “even though we won”.
*
My questions are as follows:
*
1.***** Am I correct in assuming that either the order was executed, or I should still own the options, which are still way in the money?
2.***** Is it even possible that two days later; when they tried to match tickets to actual transactions, that it was discovered that my trade (sale of deep in the money options) sold for nothing, and therefore I lost my initial investment and all profits?
3.***** My broker has offered NO paperwork involving this transaction, and simply just keeps reasserting that they are doing all they can to fight for me. However, could he actually be scamming me?
4.***** Is this a common scam?
5.***** Who does a client contact to have this matter looked into?
6.***** How do I know whether the problem is with my broker, or on the trading floor in New York?
7.***** What paperwork do I request, and who do I contact to get access to it?
8.***** Am I correct in assuming that I should either own the call options or the profits which they generated on that date, and therefore time is of the essence in case the market moves against current value of the options?
*
I am relatively new to the market, and this is the first transaction in which I have used this broker, and this company. Can someone out there point me in the right direction, or let me know if I am wrong for even assuming that something “fishy” has gone on. One last note is that on looking at option sales on the day in question there is no indication that there were any sales for, or anywhere near zero dollars.
