You had a 0% probability of getting filled at a $10 credit š. Iām not sure why they banned you for it but also unsure of what you were trying to accomplish.
Itās probably worth noting that even if he bought this (he tried to get credit lol) the short would almost certainly get exercised that same day. Itās like trying to backdoor into $400m in margin
The short leg requires $444 million dollars as margin.
Doesn't matter if it's a debit or credit spread - the short leg still means you need margin balance. Because that leg can get exercised without the long leg being exercises.
No one is giving you $444m on a $32k account.
I was thinking about this. Can Trump sell a bunch of ITM calls that expire more than six months out and still be compliant with his share lockup? Given the number of shares that he has, this could be a way to raise the bond money that he needs.
The margin requirement is always the spread with minus the credit received. So the trade should require 0 margin. If someone exercise the short side you can exercise the long side and offset the shares. If you can actually get filled for 10 is another question though.
Buy 100 sell 110 on deep in the money call options means it should cost you close to $10 to do the trade. A little less due to various reasons but still itās a net debit spread to purchase. Here OP is attempting to get paid $10 as a credit on it. Thatās why it shows profit at expiry of $20 on a $10 spread. A similar thing would be to expect to be paid $10 to receive a stock worth $10. Thatās just not going to happen.
>Iām not sure why they banned you for it but also unsure of what you were trying to accomplish.
OP probably lied and said he has 10 years of options trading experience
Then sets up a debit spread, calls in and does not understand why he can't collect a credit on a debit spread
Etrade probably realized he lied about his option trading experience because normally this should never happen and if it did it would basically be a free money glitch
When I was in my teens I thought making wash trades helped āmove the marketā. No idea why I thought that or what āmoving the marketādid for anyone but dam was I proud of the movement I created.
Hi! I like what people on this comment thread are saying but here's my pov, I could have entered the same trade as a debit for $1 to keep it in line with being a debit spread but what I don't get is shouldn't the execution of the trade depend on the probability that the market maker will earn the points on the transaction? With 100% chance of profit based on Etrades own model I don't get why they would disallow such a transaction let alone ban me.
With all respect, you need to learn more about how this really works before trying to do spreads in your Roth IRA. The short answer here is that their model was completely wrong, because there was zero chance of the trade actually being filled - for a myriad of reasons.
With such an obvious lack of understanding of options fundamentals, E*Trade can very reasonably deduce that you werenāt truthful on your application to trade options, thus itās within their right to kick you.
Again, Iām not trying to belittle you at all here. But, the answer to your question of why/how would they ban you is rooted in the lack of understanding of what you were trying to trade here.
This reminds me of the guy that was trying to get like $36,000 in credit when he needed like $4 mill collateral and he was wondering 1. Why robinhood wasnāt letting him do the trade and 2. Why people donāt do it since it was like a 96% chance of profit
š
I am guessing OP lied and said he was an expert options trader with 10 years experience trading options.
He then calls into etrade trying to explain he wants to get a credit for his debit spread and trade realizes he lied and tells him to take a hike
OP was never filled, just interpreted it as such āand reversedā eg not filled. Trade would have been rejected with something like āthe net credit you entered exceeds the regulatory margin requirement.ā If they closed his account, itās simply because after completing the account opening questionnaire acknowledging X years experience trading options, he demonstrated in a single trade that he actually had none.
What youāre trying to do is called a Call Debit Spread. But then you are trying to get credit for the spread which makes no sense (thus the $0 maximum loss potential). Also those spreads would never get filled anyway.
Debit spreads work by putting money upfront and the maximum loss is limited to net debit paid (the call contracts you bought). If the stock closes at expiration above the strike price of the short contract (the calls you sold) then that minus the debit you paid is your profit.
If none of this makes sense to you you probably shouldnāt be trading options, much less spreads. Unfortunately you didnāt discover a cheat code to make $20 million
Theoretically it would be possible if you didn't do it as a spread and bought each leg individually at the absolute max / min of each leg. There's just a basically 0% chance of that occurring.
Yea this should be considered a debit spread not credit but it looks like Etrade has the description wrong because it says "the credit(that you receive)". Maybe because it's a net positive for the premium because OP thinks it's possible for him to get those asking and bid prices?
The credit is from the other quoted b/o and would never get filled. E*trade would have to keep this order on its books and itās a waste of bandwidth so they told him to pound sand for even trying this basic bs.
I bet they fired him because he keeps doing stupid or he's extremely belligerent and unprofessional. They undo a bad trade and educate you, keep doing that and you're costing them money
Presumably Etrade didnāt want an order of this size from an account of this size. Basically no equity backing a very large options position. The credit spread aspect is irrelevant because it wasnāt a cheat code or anything, just a large bid ask spread on a deep ITM spread. To compound the problem heās doing it out of a Roth IRA. I guess in theory if he had about $20 mil in a regular account and attempted to cross this spread there he could put $20 mil into his Roth lol. Of course that cross would never actually happen. Free money to Citadel if attempted.
Nah not free money just an incredible stupid trade. First off op is trying to sell a debt spread for a credit. But also a credit at the absolute max the spread would be for a debit LOL. This entire trade says I donāt know what Iām doing.
Op clearly lied about their experience, tried to take on massive risk (10,000 contracts at 100 each is nearly 100m). If I saw this hit my desk it would be an immediate red flag.
He set up a debit spread, but wants to receive a credit.
He will never get filled, but he is also buying a spread that is really deep in the money. He will just get assigned the next day in the short leg and end up with a huge margin balance.
So many things are wrong with this trade and somehow I feel like OP thinks he is the victim.
Instead of trading, OP deserves to be running for office in local or federal government. Trying to get credit for something where he needs to pay the dues :)
Saw this on my home page. I got my account kicked off eTrade 10 years ago. My actions were opening an account, then immediately opening the foreign currency account for some allied countries currency like JPY. That's all I did. Then I got banned and had to fight to get my money back too. I just wanted to use eTrade to trade on foreign markets, since my normal broker was fine for US markets. I think they must be really quick to ban people for perceived transgressions.
Yes. I had not seen a spread that overlapped so heavily so I thought I would try it but people are trying me I'm a butt hit so I shoulda just kept to it being a debit.
You should look up the tale of u/1ronyman and why this could actually go very poorly for you and that etrade saved you a headache and banned you for being a regard
There's a 99.9999% chance if this had filled and he was smart about closing, he'd have made a killing. Obviously it would never fill and ETrade can look at this and realize the guy can't even comprehend simple bid ask on a single leg, let alone a spread, but that's neither here nor there.
Except for assignment risk. Which are regularly early assigned, because who buys .99 delta options other than people who have no problem exercising to balance their book. Again, look at the tale of the legend that is u/1ronyman. Can't go tits up
Part of what killed ironyman too is that, because he was selling options so deep ITM, there was no volume. A MM will still take the other end of the trade, but he had to sell at a discount on the bid/ask. He did just that, enough so that it basically was an arbitrage play for a MM (his short calls had more intrinsic value than the cost of the option)
essentially guaranteeing early assignment.
Why thats big money for them? Try Tastytrade they do'nt get bent out of shape with strange trades. In fact the encourage them.
I did a nuts trade with 1000 contracts one time paid 650 USD in commission made 1650 USD. Not really worth it.
When doing trades like that test in small amounts first. 10,000 is a lot for market makers to catch.
Interesting. Where does tasty encourage strange trades? I love trading trying random things on high volume stocks (actually got a credit on a single debit spread once) to see theyāll hit, but I know not to push my luck. Maybe I need to check out tasty.
If I do Iāll ask for your referral link
Just a quick question for you: who do you think is on the other side of that trade? Like, what counterparty would be willing to *pay you* to let you *long debit spreads*? What market maker would ever do that?
Once you can answer that question, you will have the answer to yours.
Do you comprehend even the most basics of option trading to make this claim? This has nothing to do with money laundering and everything to do with him not understanding bid vs ask spreads and thus being a liability for option trading.
Because he's a liability. If they continue to allow him to trade options, chances are he'll blow up his account 10x over and then the broker will be on the hook for the margin call.
Me: I'm ignorant of how stocks work, I'm going to float in some stock-y spaces to try and learn.
Also me: I bought a stock! I think I understand this!
Also also me, reading every single explanation on here and Still not truly understanding this joke: I'm ignorant of how stocks work.
Aside from what all else saidā¦someone has to purchase other side. I could put a sell $1M calls for Nvda at $50/ doesnāt mean it gets filled/no one wants to but(I mean if itās something other than NVDA)
very suspicious that they closed your account.
the trade was unlikely to get a fill.
etrade closing your account makes it seem like you got a fill and something shady is going on.
perhaps consulting a lawyer is worthwhile.
Youāre asking for a 444m margin when you have 32k available, no financial institution wants to be in the hook for that. Itās gross negligence on their end.
This is the dumbest thing Iāve ever seen in my life. You clearly demonstrated that youāve never traded options before in your life. Iād ban you as well for wasting my platformās bandwidth like that.
The fact that E*trade would have to credit him 10mil before the trade even filled is grounds for closing an account because you cant play with the houses money.
Takes lots of money to make lots of money, your 32k was not enough. E*trade would have probably exercise this trade if it was a crooked politicians account.
Ahhhh another person who hasn't studied finance, thinking they're "going to outsmart the brokerage limitations."
I bet you legit thought you were going to be a millionaire when you pressed that button, didn't you?
BAHAHAHAHAHAHA. LEGIT HILARIOUS. Get a real job and a real hobby--clearly finance is not something you've studied or a real hobby. š¤”š¤”š¤”š¤”š¤”š¤”š¤”ššššššš
Anyone want solid trade
Signal during the day, let me know. I had a cgc call earlier this week, as well as a acb call. Then earlier today I called out rh call for next week exp. Also a solid 35% on Tesla call earlier today. Reach out if youāre interested. Thanks. First few trades are free so what do you have to lose?
Well no shit.
How is any of that real money? Do people really believe they are buying anything when it comes to calls and puts?
So all I have to do is spend like one percent of the value of whatever I am trying to invest in and get 1000 times the return? Does that make any since in the land of reliably?
This must be a shitpost but I've got a real story for you
back in 2008 when everything was going to the shitter i sold a ton of naked puts on MS at the low , showed my mortgage broker all the cash in my account and bought half a dozen rental properties
Why did Etrade fire this firecracker of a customer? Because he put in order for 10k x 2 contracts? That too of NVDA rofl. Similar to the guy in the UK who was spoofing the market? Would love to know since most of the people in Etrade options desk have a good head on their shouldersā¦ bet theyād be ok be he put order in for 10 contracts. Sometimes if you ask for credit where debit is due the order gets rejected too.
They might have fired you because you clearly have no idea what you are doing.
Or you probably reached out to them and yelled at them for your own stupidity.
There is a reason I donāt trade options. I donāt know what the fuck Iām doing. Too many watch TikTok stock guys for 2 hours and think theyāre a pro. Half the guys on TikTok are full of shit, the other half wants your money to join a club thatāll get you āinside tipsā thatās āguaranteed ā to make you 10k a day. Itās all bullshit, stay in your lane, and only trade with the experience and money that you have. These same people also think they can outsmart the IRS.
It's not that difficult to set the BUY price at the ASK and set the SELL price at the BID for a net credit and do a trade analysis preview. Clicking the "execute trade" button is another story which even if he did, this trade would never execute on a 32K balance for that number of contracts. Although, it would be interesting to see if it would execute on a 50M account balance.
But yes, one could technically do this trade w separate individual BUY and SELL orders (alot less contracts).
Lol trying to collect $10 in credit to be LONG a $10 spread, doing it with 10,000 contracts/$10 million in premium, in a $32K IRA is wild.Ā
ā99% chance of successā ā sure, but a 0% chance this trade would ever, ever fill.Ā
E*trade wonāt let you take advantage of any arbitrage. If you find it, theyāll cancel the trade and likely do it themselves or front run your own trade.
You need to book each leg separately which requires a lot more capital
This isnāt even set up to be a credit spread. Heās buying 100ās and selling 110s. That is a debit spread. OP misunderstood the whole order. Mid price would debit the account $8,000,000.
This is what they call a āfree lunchā trade and they reserve it for themselves. I got fucked the same way years back on GOOGL iron condors. Right after they reversed / blocked they ate all 400 contracts of opportunity for themselves. That said there are capital requirements you have to meet to have open risk. You were probably short of it.
What did I tell you about Morgan Stanley they are not been compliant ! Who underwrote the deal to purchase ETRADE ? When everything was just fine before purchase
You had a 0% probability of getting filled at a $10 credit š. Iām not sure why they banned you for it but also unsure of what you were trying to accomplish.
OP seems to claim that it was filled. Then reversed.
If itās rejected that happens before the order is sent to the market. It didnāt fill. Not like it had a chance of filling anyway.
Itās probably worth noting that even if he bought this (he tried to get credit lol) the short would almost certainly get exercised that same day. Itās like trying to backdoor into $400m in margin
Oh how reality hurts.
That trade would have never filled. Heās lying saying it did.
The short leg requires $444 million dollars as margin. Doesn't matter if it's a debit or credit spread - the short leg still means you need margin balance. Because that leg can get exercised without the long leg being exercises. No one is giving you $444m on a $32k account.
OP seems to think with enough lube etrade might consider it
This isnāt RH
āConsider lube options then weāll talk about the loanā
So calls on JiffyLube?
Not āenoughā lubeā¦. More like āallā the lube
Plot twist..op is trump trying to get his bond money.
I was thinking about this. Can Trump sell a bunch of ITM calls that expire more than six months out and still be compliant with his share lockup? Given the number of shares that he has, this could be a way to raise the bond money that he needs.
This is suspiciously close to what a former president needed for a bond payment. Is this Don?
The margin requirement is always the spread with minus the credit received. So the trade should require 0 margin. If someone exercise the short side you can exercise the long side and offset the shares. If you can actually get filled for 10 is another question though.
Looks like they gave him 10m tho lol
Hi...im always wanting to learn more and more about options trading. Why did you state that the trade OP posted has 0% probability of getting filled?
Buy 100 sell 110 on deep in the money call options means it should cost you close to $10 to do the trade. A little less due to various reasons but still itās a net debit spread to purchase. Here OP is attempting to get paid $10 as a credit on it. Thatās why it shows profit at expiry of $20 on a $10 spread. A similar thing would be to expect to be paid $10 to receive a stock worth $10. Thatās just not going to happen.
Got it. Thanks for the clarity ššš½
>Iām not sure why they banned you for it but also unsure of what you were trying to accomplish. OP probably lied and said he has 10 years of options trading experience Then sets up a debit spread, calls in and does not understand why he can't collect a credit on a debit spread Etrade probably realized he lied about his option trading experience because normally this should never happen and if it did it would basically be a free money glitch
And if there was an extremely unlikely glitch, it would be a hassle for Etrade to deal with.
When I was in my teens I thought making wash trades helped āmove the marketā. No idea why I thought that or what āmoving the marketādid for anyone but dam was I proud of the movement I created.
Hi! I like what people on this comment thread are saying but here's my pov, I could have entered the same trade as a debit for $1 to keep it in line with being a debit spread but what I don't get is shouldn't the execution of the trade depend on the probability that the market maker will earn the points on the transaction? With 100% chance of profit based on Etrades own model I don't get why they would disallow such a transaction let alone ban me.
With all respect, you need to learn more about how this really works before trying to do spreads in your Roth IRA. The short answer here is that their model was completely wrong, because there was zero chance of the trade actually being filled - for a myriad of reasons. With such an obvious lack of understanding of options fundamentals, E*Trade can very reasonably deduce that you werenāt truthful on your application to trade options, thus itās within their right to kick you. Again, Iām not trying to belittle you at all here. But, the answer to your question of why/how would they ban you is rooted in the lack of understanding of what you were trying to trade here.
This belongs on r/wallstreetbets
Ditto... guy went full regards...
my kinda guy š¦
The Real RobinHood! Lmao š¤£
Yeah baby!!
He met his personal risk tolerances.
Guh
They fired him for being stupid
This reminds me of the guy that was trying to get like $36,000 in credit when he needed like $4 mill collateral and he was wondering 1. Why robinhood wasnāt letting him do the trade and 2. Why people donāt do it since it was like a 96% chance of profit š
Is there any other pages that cover trading ect. Iām new too all of this and Iām very interested in learning more
Been scrolling think I was there the whole time
I see you have learned trading from the regards at r/wallstreetbets
I actually love wall Street beers and bets
That was the automated reply he got for the rejection šš¤£šš¤£
You can learn about spreads
Tell me more! I thought I did it right?
It got rejected because youāre trying to get a credit for entering a debit spread.
š
I am guessing OP lied and said he was an expert options trader with 10 years experience trading options. He then calls into etrade trying to explain he wants to get a credit for his debit spread and trade realizes he lied and tells him to take a hike
Thatās likey a level 3 technique. You likely only have level 2 or less.
OP was never filled, just interpreted it as such āand reversedā eg not filled. Trade would have been rejected with something like āthe net credit you entered exceeds the regulatory margin requirement.ā If they closed his account, itās simply because after completing the account opening questionnaire acknowledging X years experience trading options, he demonstrated in a single trade that he actually had none.
It could be because Iām high, but your last sentence is written beautifully. Well done.
Also high and agree thats some nice prose
Next time cut a few zeros from the end
Oh, OPs getting filled alright. Just in a Wendy's dumpster kind of way
Could I not have entered the same trade as a debit for $1?
What youāre trying to do is called a Call Debit Spread. But then you are trying to get credit for the spread which makes no sense (thus the $0 maximum loss potential). Also those spreads would never get filled anyway. Debit spreads work by putting money upfront and the maximum loss is limited to net debit paid (the call contracts you bought). If the stock closes at expiration above the strike price of the short contract (the calls you sold) then that minus the debit you paid is your profit. If none of this makes sense to you you probably shouldnāt be trading options, much less spreads. Unfortunately you didnāt discover a cheat code to make $20 million
This guy fucks
This is the best comment so far. You canāt collect a credit on this trade
Theoretically it would be possible if you didn't do it as a spread and bought each leg individually at the absolute max / min of each leg. There's just a basically 0% chance of that occurring.
Yea this should be considered a debit spread not credit but it looks like Etrade has the description wrong because it says "the credit(that you receive)". Maybe because it's a net positive for the premium because OP thinks it's possible for him to get those asking and bid prices?
The credit is from the other quoted b/o and would never get filled. E*trade would have to keep this order on its books and itās a waste of bandwidth so they told him to pound sand for even trying this basic bs.
I bet they fired him because he keeps doing stupid or he's extremely belligerent and unprofessional. They undo a bad trade and educate you, keep doing that and you're costing them money
Someone explain what he did pls
Presumably Etrade didnāt want an order of this size from an account of this size. Basically no equity backing a very large options position. The credit spread aspect is irrelevant because it wasnāt a cheat code or anything, just a large bid ask spread on a deep ITM spread. To compound the problem heās doing it out of a Roth IRA. I guess in theory if he had about $20 mil in a regular account and attempted to cross this spread there he could put $20 mil into his Roth lol. Of course that cross would never actually happen. Free money to Citadel if attempted.
Nah not free money just an incredible stupid trade. First off op is trying to sell a debt spread for a credit. But also a credit at the absolute max the spread would be for a debit LOL. This entire trade says I donāt know what Iām doing. Op clearly lied about their experience, tried to take on massive risk (10,000 contracts at 100 each is nearly 100m). If I saw this hit my desk it would be an immediate red flag.
Yeah he really thought that someone would give him a $10 credit on a a nearly $10 debit spread š¤£
He set up a debit spread, but wants to receive a credit. He will never get filled, but he is also buying a spread that is really deep in the money. He will just get assigned the next day in the short leg and end up with a huge margin balance. So many things are wrong with this trade and somehow I feel like OP thinks he is the victim.
Donāt quit your day job if you think this kind of comedy hour will replace your salary rofl. š¤£
Hilarious, actually.
is this a joke?
New Reddit account, made just to post this issue. So, probably, yes.
Itās called not doing business with morons. Or more specifically a āfree rideā.
Investors aren't allowed to use IRA assets as collateral for a loan, so any options trade that requires margin can't be executed in an IRA.
Not entirely true. IRA accounts can enjoy limited margin, which allows most spreads.
Honestly, I am really happy to see etrade would ban someone for doing this.
Instead of trading, OP deserves to be running for office in local or federal government. Trying to get credit for something where he needs to pay the dues :)
Saw this on my home page. I got my account kicked off eTrade 10 years ago. My actions were opening an account, then immediately opening the foreign currency account for some allied countries currency like JPY. That's all I did. Then I got banned and had to fight to get my money back too. I just wanted to use eTrade to trade on foreign markets, since my normal broker was fine for US markets. I think they must be really quick to ban people for perceived transgressions.
sounds like they felt you were a liability... based on this trade (?) probably not, but I'd wager you have built some sort of history with them.
This trade proves he's a liability. Do you really want someone able to trade option spreads who has no understanding of a simple bid vs ask?
Curious to know if you realized that you were asking to be given $10m for something that should cost you $26m?
Yes. I had not seen a spread that overlapped so heavily so I thought I would try it but people are trying me I'm a butt hit so I shoulda just kept to it being a debit.
Guh! Is that you?
Lmao š¤£
The fact I know the reference.... Damn š
My well regarded friend. Your order has no chance to fill at that price. Best regards.
I thought I was on WSB for a second
You should look up the tale of u/1ronyman and why this could actually go very poorly for you and that etrade saved you a headache and banned you for being a regard
There's a 99.9999% chance if this had filled and he was smart about closing, he'd have made a killing. Obviously it would never fill and ETrade can look at this and realize the guy can't even comprehend simple bid ask on a single leg, let alone a spread, but that's neither here nor there.
Except for assignment risk. Which are regularly early assigned, because who buys .99 delta options other than people who have no problem exercising to balance their book. Again, look at the tale of the legend that is u/1ronyman. Can't go tits up
Part of what killed ironyman too is that, because he was selling options so deep ITM, there was no volume. A MM will still take the other end of the trade, but he had to sell at a discount on the bid/ask. He did just that, enough so that it basically was an arbitrage play for a MM (his short calls had more intrinsic value than the cost of the option) essentially guaranteeing early assignment.
Why thats big money for them? Try Tastytrade they do'nt get bent out of shape with strange trades. In fact the encourage them. I did a nuts trade with 1000 contracts one time paid 650 USD in commission made 1650 USD. Not really worth it. When doing trades like that test in small amounts first. 10,000 is a lot for market makers to catch.
Interesting. Where does tasty encourage strange trades? I love trading trying random things on high volume stocks (actually got a credit on a single debit spread once) to see theyāll hit, but I know not to push my luck. Maybe I need to check out tasty. If I do Iāll ask for your referral link
Just a quick question for you: who do you think is on the other side of that trade? Like, what counterparty would be willing to *pay you* to let you *long debit spreads*? What market maker would ever do that? Once you can answer that question, you will have the answer to yours.
š¤£š¤£š¤£š¤£š¤£š¤£
Did you check the times & sales for the options?
OP could have entered each leg separately (buy leg at bid, sell leg at ask). but he only had 32k buying power lol
Easy, just sell the call first, can't go tits up!
My boy was trying to get a quick loanš¤
nikola
This was never going to fill
They only allow 3 day trades per rolling five days? Maybe you did. Maybe not.
Itās simple. You donāt own shit. Itās an IOU. DRS is the only way.
What aren't you telling us??
How could you get a credit for a debit spread, that trade isnāt possible
Sue if it was above board
āIt hitā
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Do you comprehend even the most basics of option trading to make this claim? This has nothing to do with money laundering and everything to do with him not understanding bid vs ask spreads and thus being a liability for option trading.
You donāt have the collateral
Be careful with your Roth gesh. Donāt use it for leverage or margin.
What Iāve learned from this thread is far too many people are given permission to trade optionsā¦
And many post about not getting higher options levels, its no wonder brokers want to tighten things . . .
How can you be fired as a customer?
Because he's a liability. If they continue to allow him to trade options, chances are he'll blow up his account 10x over and then the broker will be on the hook for the margin call.
because ur a fucking dip shit that doesnt know wtf ur doing
Or it got immediately exercised or was about to and they saw your buying power
Me: I'm ignorant of how stocks work, I'm going to float in some stock-y spaces to try and learn. Also me: I bought a stock! I think I understand this! Also also me, reading every single explanation on here and Still not truly understanding this joke: I'm ignorant of how stocks work.
Me: read investopedia article on options trading Also Me: realizes none of this stuff was covered in it
Aside from what all else saidā¦someone has to purchase other side. I could put a sell $1M calls for Nvda at $50/ doesnāt mean it gets filled/no one wants to but(I mean if itās something other than NVDA)
very suspicious that they closed your account. the trade was unlikely to get a fill. etrade closing your account makes it seem like you got a fill and something shady is going on. perhaps consulting a lawyer is worthwhile.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
This WSB? Lol You have a massive margin issue. This order would never have gotten filled anyway, so no, you didnāt get screwed.
In a Roth IRA too. š
Get a lawyer
For what? Trying to make a 444 million trade with zero collateral?
If you actually got filled I'd be surprised but thats an obvious mispricing on the 2026 spreads. I wouldve done the same thing, you cant lose.
Is it just me or does etrade have the kinkos or fedex office logo?
Youāre asking for a 444m margin when you have 32k available, no financial institution wants to be in the hook for that. Itās gross negligence on their end.
Suck it up, nothing happened to Robinhood, nothing will happen here.
Why the fuck are you trading margin in a Roth IRA either. You trying to not retire?
Get a lawyer. Make them pay.
The more I dove into this screenshot the funnier it got
You can do this with a ROTH IRA account? Cool.
Wowš¤¦š¾āāļøš¤¦š¾āāļøš¤¦š¾āāļøš¤¦š¾āāļøwhy they mess up your pay day
you shouldnāt be trading clearly
Sir, this is America. Options can be traded AT ANY TIME. Will eTrade let you trade on a $444M margin? Come on now.
This is the dumbest thing Iāve ever seen in my life. You clearly demonstrated that youāve never traded options before in your life. Iād ban you as well for wasting my platformās bandwidth like that.
The fact that E*trade would have to credit him 10mil before the trade even filled is grounds for closing an account because you cant play with the houses money.
Wow lol. I'm saving this.
Or did they use your money, made mad profit, the retro the invoice to reject the transaction, to you. But kept the money, only answering to Uncle Sam.
Yooo thats sick. I tried to cash a check from my mom's for 1 billion dollars. Bank said they didnt have the cash šŖ
Noob
Fuckin WSB bruh got smoked like a blunt by his broker for pulling some NVDA options shananigans. Classic... šš
This is the funniest shit Iāve ever seen
Cacacacacasinooo lol, e trade can't have you win at their own game .
You can post on /wsb for karma. They love well regarded traders over there, this would be a hit.
Fake
My butt plug ejected itself when I saw this post!
Same happened to me, but for a totally different reason
You set off E*Tradeās regard monitor
Takes lots of money to make lots of money, your 32k was not enough. E*trade would have probably exercise this trade if it was a crooked politicians account.
This is either a troll or you should never open an account again. Like, ever.
What did you buy?.
Ahhhh another person who hasn't studied finance, thinking they're "going to outsmart the brokerage limitations." I bet you legit thought you were going to be a millionaire when you pressed that button, didn't you? BAHAHAHAHAHAHA. LEGIT HILARIOUS. Get a real job and a real hobby--clearly finance is not something you've studied or a real hobby. š¤”š¤”š¤”š¤”š¤”š¤”š¤”ššššššš
That wouldnāt be filled at a credit- let alone a $10 credit
Fidelity app option does not show max profit nor loss ... i looked and looked and nowhere to find
The website does
Everyone thinks they found a loophole. The margin needed in your account is too high
I'm sure this isnt your first order like this?
Anyone want solid trade Signal during the day, let me know. I had a cgc call earlier this week, as well as a acb call. Then earlier today I called out rh call for next week exp. Also a solid 35% on Tesla call earlier today. Reach out if youāre interested. Thanks. First few trades are free so what do you have to lose?
Bullshit
Well no shit. How is any of that real money? Do people really believe they are buying anything when it comes to calls and puts? So all I have to do is spend like one percent of the value of whatever I am trying to invest in and get 1000 times the return? Does that make any since in the land of reliably?
This deserves to be in Wall Street Bets lol
Bro they mark zuckerburged you š
LOL. a call debit spread where you receive a credit. Ya i would ban you too
This must be a shitpost but I've got a real story for you back in 2008 when everything was going to the shitter i sold a ton of naked puts on MS at the low , showed my mortgage broker all the cash in my account and bought half a dozen rental properties
What do all those zeros even mean?? Ten thousand calls, imagine if they had to fill them by hand.
u/zikadick69
Why did Etrade fire this firecracker of a customer? Because he put in order for 10k x 2 contracts? That too of NVDA rofl. Similar to the guy in the UK who was spoofing the market? Would love to know since most of the people in Etrade options desk have a good head on their shouldersā¦ bet theyād be ok be he put order in for 10 contracts. Sometimes if you ask for credit where debit is due the order gets rejected too.
Thanks for the laugh š I'm sure you're the only person that's thought of this ever lol
Lmfao rightfully so
you were too smart for them so they had to ban you from the platform
What ticker?
They might have fired you because you clearly have no idea what you are doing. Or you probably reached out to them and yelled at them for your own stupidity.
Ticker?
There is a reason I donāt trade options. I donāt know what the fuck Iām doing. Too many watch TikTok stock guys for 2 hours and think theyāre a pro. Half the guys on TikTok are full of shit, the other half wants your money to join a club thatāll get you āinside tipsā thatās āguaranteed ā to make you 10k a day. Itās all bullshit, stay in your lane, and only trade with the experience and money that you have. These same people also think they can outsmart the IRS.
Iām with you. I loathe options.
It's not that difficult to set the BUY price at the ASK and set the SELL price at the BID for a net credit and do a trade analysis preview. Clicking the "execute trade" button is another story which even if he did, this trade would never execute on a 32K balance for that number of contracts. Although, it would be interesting to see if it would execute on a 50M account balance. But yes, one could technically do this trade w separate individual BUY and SELL orders (alot less contracts).
Lol trying to collect $10 in credit to be LONG a $10 spread, doing it with 10,000 contracts/$10 million in premium, in a $32K IRA is wild.Ā ā99% chance of successā ā sure, but a 0% chance this trade would ever, ever fill.Ā
Definitely Trump... deal
E*trade wonāt let you take advantage of any arbitrage. If you find it, theyāll cancel the trade and likely do it themselves or front run your own trade. You need to book each leg separately which requires a lot more capital
This isnāt even set up to be a credit spread. Heās buying 100ās and selling 110s. That is a debit spread. OP misunderstood the whole order. Mid price would debit the account $8,000,000.
I'm thinking about interactive brokers. Thank you!
Trading in Roth IRA r/wsb
Max loss: $0! Profits secured!
Who tf has 20 mil to gamble and then turns to Reddit for advice lol
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As you should
They were right to do so, they donāt like when people gamble with their money.
Order was placed for a credit but this spread is a debit. That is why the order rejected
This is what they call a āfree lunchā trade and they reserve it for themselves. I got fucked the same way years back on GOOGL iron condors. Right after they reversed / blocked they ate all 400 contracts of opportunity for themselves. That said there are capital requirements you have to meet to have open risk. You were probably short of it.
When I open a new account I limit my first transaction to 10m risk, not 20m
Dude tried to get 1000-1 margin from his Roth IRA. Regards my regards, truly regarded.
Yea no, noone is going to buy those. Even if you did get filled, good luck fulfilling obligations in the event of getting exercised.
What did I tell you about Morgan Stanley they are not been compliant ! Who underwrote the deal to purchase ETRADE ? When everything was just fine before purchase