Tradeking a bunch of crooks (forced to cover NFLX)
Can a company force you to cover NFLX when you have no margin call? Tradeking forced me to cover NFLX yesterday at market price. I was assigned over the w/e with -1500 shares from selling 15 contracts of nflx call. tradeking said they didn't have enuf shares for me to be assigned with the short pos and i had to cover at market price. they wouldn't even allow me to put a limit price on it. this is criminal!!! i have no margin call and my shorts was assigned to me from selling calls. i was forced to cover at market when i have no margin problem. what is wrong with this picture. needless to say, few seconds after they automatically forced to covered NFLX, it dropped! instead of making money, i ended losing thousands of dollars. Tradeking is a bunch of CROOK. I AM MOVING MY ACCT TO TDAMERITRADE!
If your options expired in the money, then they will be assigned. If they are out of the money, then the options expired worthless and they should not be able to force you to cover. I assume that the strike price of your options were in the money, right?
i sold 210 calls so i pulled in 11k premium. the calls were a few dollars in the money and so i was still up when i was assigned. i didn't think they could force me to cover when i don't have a margin call but they did. i have been trading stock and options for over 14 years and this is a first for me. i talk to other broker firms and they thought it was odd as well. i am switching to TDAMERITRADE. they will match the cost of commission and pay to have my acct transfer, giving me $500 in cash since (over 250k transfer) and 1 month free trade. tradeking sucks and has only 1 guy for executing trades. when their system was down, you couldn't even get through to make any trades. what a scary company!!!! they need to be investigated and shut down.
no, i didn't short the stock i sold calls and was assigned with the shorts. i have always made money selling calls on nflx until recently from the earning news. i just sold another 15 contracts march 230 call and june 250 call. i am already making money with these 15 contracts. i doubt nflx is going up any further. so i get to keep $17k if nflx doesn't continue to go up above 230 in march and 250 in june. it's easy money selling calls on NFLX at this inflated price.
they didn't have the shares to begin with. it was not even in my account. i was assigned from option expiration. this is something SEC needs to investigate. i didn't short the stock, i sold calls and was assigned with the shorts. they didn't have the shares to assigned to me. this should be looked by SEC. if a company didn't have the shares to assign, they shouldn't be allow to let the client sell calls against it.