Steve, I had an odd problem on an option trade today and was hoping you'd give me your thoughts.
I entered a limit order to sell 20 contracts of a put at 8 when it was quoted at 7 7/8 by 8 1/8. Subsequently the stock drifted a little lower, and the put bid rose to 8. My broker admits that there was a good bid of 8 for at least 9 minutes, but I didn't get a fill (immediately after this, the stock took off and rose 30% and the put fell to 6, which would have given me a quick $4000 profit).
I've complained to the broker, and of course gotten the run around and a lot of excuses. The latest story is that the order was routed to the AMEX, but the best bid of 8 was coming from the Pacific. I'm told that the AMEX market maker was under no obligation to either fill me at the Pacific quote or to route me to the Pacific.
Apart from being handled poorly, was my order handled legally? And where does the fault lie, with my broker, or the AMEX market maker? Would you say I had grounds to file a complaint? It seems there should be some rule which says a AMEX trader can't hold an order if a better quote is coming from somewhere else, but apparently he can.
Thanks,
Steve |
