Hi - I'm new to this board and came across it as I was searching for a bit more info on the settlement of the Nov DJIA contract. I have traded options long enough to know about the manipulation that can occur on the EDSP and the even more secretive SOQ in the US. Unfortunately I was short of the Nov 10700 Puts and was caught out by the blatant fraud that occured on Fri morning. My options were 20 points OTM at 8.30pm on Thu evening but we had a bit of a run up to close at 10720.22 - not ideal but I could live with it. The Dow obviously had a strong start on Fri morning but I fell off the floor when I saw my options expire at 10844. The opening level was 10719.34 and the high of the day was 10796.26. I'm surprised I can't find more complaints about this - or am I the market fool!
I don't mind taking losses on the chin, but I think that settlements should at least have some bearing on where the cash market is actually trading. I don't see how this product is tradeable anymore as you could think you were 500 points OTM only to be told that a bunch of market makers have decided that settlement shall be 1000 points different to cash market so tough luck.
I don't mean to make my first post a rant but am I on my own in thinking this was a stich up?
I don't mind taking losses on the chin, but I think that settlements should at least have some bearing on where the cash market is actually trading. I don't see how this product is tradeable anymore as you could think you were 500 points OTM only to be told that a bunch of market makers have decided that settlement shall be 1000 points different to cash market so tough luck.
I don't mean to make my first post a rant but am I on my own in thinking this was a stich up?
