New York, New York
9 comments
Not resolved

OptionsXpress

Online Options, Stocks & Futures Brokers

311 W. Monroe Street, Suite 1000

Chicago, Il 60606

www.optionsxpress.com

I make use of a put credit spread strategy on the SPX or the S&P 500 index, and when the SPX drops down to the strike price of the short put I exit the spread.

On 1/22/08 I had a spread of 26 SPX Feb 1300 Short Puts x 26 SPX Feb 1275 Long Puts. I had a trigger point set to 1299 so that if the SPX or the S&P 500 drops below 1299 then immediately my spread should be sent to the floor as a Market Order to close.

However, when I examined the fill report, I found out to my amazement that OptionsXpress triggered my spread closing order not at 1299 as I specified when I setup the contingency order, but at 1275.62 or while the SPX lost another 1.8% of its value. The closing cost was $1,400 per spread put or $36,400 for 26 spread puts, and based on my experience (six years as an active trader of options, and almost exclusively trading options on the SPX) if it was done right I should not have paid more than 10.00 or $26,000 for 26 spread puts even under conditions of high volatility because the long leg counterbalances the short leg which is one of the advantages of trading credit spreads versus naked options.

I notified the OptionsXpress executives of this error, and told them that it is their responsibility to absorb the cost of this $10,400 contingent order late activation error or irregularity, and I was even assured by one of OptionsXpress' Executive Vice President, Phil Bennett, who happens to be the brother of OptionsXpress Current Vice Chairman and Prior CEO, Ned Bennett, 6 years ago when I considered the possibility of a contingent order not activating that OptionsXpress has business insurance for such an event, and I will be made whole in such a case.

To my utter disbelief and bewilderment I found them to turn options theory on its head, and make the outrageous false contention that I would have received the same fill price whether my closing spread Market Order was executed 1 point ITM or almost 25 points ITM on the SPX.

Bernard Laufer MCP, CPA

P.S. Those six letters after my name indicate that I am an Investigative System CPA by profession. It was my job to detect fraud, and catch *** artists as they were engaging in their criminal acts, but I was taken by the OptionsXpress Management Team of *** Artists before I even knew what hit me.

In any case, I suggest that if you have any dealings with this firm then head for the nearest exit metaphorically speaking. An ounce of prevention is better than a pound of cure. Financial *** artists are generally good at what they do, and some are so good at what they do that they up ripping off the public of millions and even of billions of dollars legally as we are well aware of.

As I write this complaint here I already filed a report with the Securities Exchange Committee, and requested that they start a criminal investigation into OptionsXpress' Executive Management fraud and embezzlement of my assets plus I have several other logs in the fire to teach the executive swindlers at OptionsXpress that crime really doesn't pay. I wonder how much this public dispute will end up costing them in lost business!

Review about: Options Trading.

Review #132526 is a subjective opinion of a user.

PRODUCT OR SERVICE Not specified
Reason of Review / Monetary Loss Not specified / Not specified
Preferred solution Not specified

Had an Experience with Optionsxpress?

Write a review

Comments

Comment as anonymous or
Terms of Service
Post Comment
Cancel
Anonymous
#1108611

I am finding more and more brokerage firms are out to cheat clients.I can not find one that is fair.

I have a relatively good win percentage and make consistent money but I know fully well that if I increase my bets the cheating will get worse. I am better off finding work that I love to do in my retirement and let the crooked brokers find fools that do not know any better. They all hide behind arbitration agreement anyway.

The little guy always gets stomped.Adios Wall St.

Trader
Los Angeles, California, United States #836204

I am a Schwab client and have traded options for many years (1974).After careful research as to how OEx does business, I will NEVER fund my OEx account.

I asked Schwab why they ever teamed with such sleeze bags, and never got an answer. OEx could/may ruin Schwabs reputation.

I trade over 1,000 options per year with Schwab and keep OEx out of the picture.Be very careful.

Medsurg
#414503

Bad before, Schwab merger makes them not worth the effort

Mathew
#378775

I did a sell at market price and got $ 70,000 in my account. I was wiring the money to my bank account and then the vp called me and told that they have kept the money as it was

a mistake at thye exchange whic is not true I believe. I don't know if I can do anything for that.

Dean
#365063

I've had so many trades where I have checked the live price on multiple sources and have noticed where I have been scammed repeatedly.

Bid / Asks are manipulated systematically.

Richard S
#279070

We had silver options at 50.The market took a five minute spike around midnight a day ago that put us in margin trouble.

OptionsXpress immediately terminated the account at a price of 725; at the end of the 5 minute spike the price dropped to 330 and soon dropped into the hundreds.

In situations like this, according to OptionsXpress, we have no recourse because technically we could not meet our margins at the time of the trade.We lost our entire account, around $70,000.

Fred and Moises and Peter
#218262

Yes we admit we repeatedly do not use the best professional and position OXPS against the interests of our clients

cl***actionoptionsx@gmail.com
#39207

classactionoptionsx@gmail.com

Optionsxpresscl***action
#39206

We would like to talk to you.

classactionoptionsx@gmail.com

If you've had an optionsxpress account and have experienced financial loss you will want to read this:

Did you loose more than $10,000 and felt that you've been misled or misinformed by optionsxpress. If so, please contact us immediately with detail of your story or complaint.

Your correspondence will kept private unless you wish otherwise. Please include you name and if you wish to be contacted concerning a class action suit.

You May Also Like

WHO IS ON THE TAKE HERE WHEN IT COMES TO GE CAPITAL RETAIL & PAYPAL Paypal "These Crooks can use a money figure & call it a "Debt Cancellation Fee" & when that backfires they call it a "Card Security Fee". They can tell you..." Read more Apmex - Cindy / Head Of The VIP Departement is A LIAR! Apmex "I ended buy buying over $200,000 in silver bars from Apmex late last year and early this yerar, after about $75,000 to $100,000 in purchases I was called and sought..." Read more World Financial Group - Read This to Learn How WFGers RIP YOU OFF! World Financial Group "In his “review” last week San Diego Anon oozes about “...a beautiful lifelong career…” It’s “beautiful” all right. IF you love to recruit everybody in sight and personally..." Read more World Financial Group - Why the FFIUL--WFG’s Flagship Policy--is a *Disaster* World Financial Group "Please see attached the chart page from a Transamerica Financial Foundation Indexed Universal Life (FFIUL) policy. A California WFG agent sold this policy to a client earlier this year. Transamerica..." Read more My Assignment Services - Assignment Writing Services My Assignment Services "I am college student of accounting and getting tired from assignment given by university and they provide us a very short time to complete it.In the begging i am trying..." Read more Skechers, Ahh my love of the shoes  Ahh at their *** poor customer service. Skechers "Aprx 2 months ago I was treated horribly @ Sketchers by their employees. I have purchased over 10 pairs this year alone. Mistaken case of me being someone else. I..." Read more Rude Jewel Osco Employees Jewel Osco "I was publicly humiliated by the cashier and bag lady at my local jewel june 24, 2017. I have attached video I captured with my iphone of the detailed incident...." Read more Ingo Money - Fees are all they are  after...the truth read Ingo Money "I have long time standing clients. And they Ingo will charge exorbitant fees for a "Mobile Check Load" They Ingo are opportunists with predatory standards to essentially fleece you upfront...and..." Read more