Hey Guys,
Some crazy stuff happened this morning with a couple of my positions.
Let's start with BAM. That company made a deal with another business that involved distribution of its shares. Anyone who owned BAM as of the end of the day Friday was affected. I was one of those people, and as of this morning I had 25% more shares in my account for BAM.
Also, the price for BAM was reduced accordingly. So when you look at the chart, it looks like the price of BAM fell off a cliff. That's because the price was recalibrated for the new share counts.
BUT, aside from that recalibration effect, the real value of BAM stock also dropped. At the end of the day, the real price gapped down below my stoploss for an oversized loss (almost twice as big as normal). Ouch!
Also, my previous sell orders were no longer in place. Presumably my broker deactivated them due to the re-distribution. So I had to manually close the position. And when I manually closed it, I had more shares than I originally bought, so I had to account for that and make sure I closed them all out.
Very confusing and atypical.
If that wasn't enough weirdness for one morning, there was also an interesting scenario with SEE. In its first minute of trading, the price flashed down and hit my stoploss. I use a market stop order for my stoplosses, which means if the price of my stoploss gets reached, a market order is used to close the position. And with a market order, the position gets sold to the highest bid at that time. The interesting part is that the price must have flashed back up so fast that my order was filled for a price that was noticeably higher than my stoploss. I ended up with a half-sized loss instead of a full-sized loss even though my stoploss was hit.
Two scoops of weirdness to start the week.
I picked up a few new positions this morning. I bought ETSY in the main account. I bought options for PTON in the extra options account. I bought shares of CEIX from the low-priced account.
I also had a few stock positions reach their time limits this morning, so I manually closed those at the opening bell. One was profitable and the other two were losses.
If you have any questions or feedback, I'd love to hear from you.