Investing

TDDI Options Selling

  • Last Updated:
  • Apr 6th, 2021 12:22 pm
[OP]
Sr. Member
Mar 14, 2015
763 posts
60 upvotes
Edmonton

TDDI Options Selling

I have the buying power required to fill my trades and yet I always get a 'This order will be routed to an Investment Representative for review.' when I try to sell puts.

Started off with GME but even when I try for something else like PSTH or CCIV it always gets rejected, anyone know if TD has restrictions or why this is occurring? I have level 4 options trading and have sold puts before but for these securities I always encounter this... anyone have any broker recommendations that have no issues like this or how I can resolve this? Phone lines take too long to get through so wanted to know if anyones been through this
4 replies
Deal Addict
Jan 5, 2006
1014 posts
165 upvotes
Mississauga
I use IB, zero issues. What I deduced is that TD is probably front running me when I play options. I can enter the same order in TD and IB, but the trade often doesn't execute on TD, or only does so when its wildly going against me. I strictly use Interactive Brokers now for my non-registered trading needs. I keep TD only for my TFSA and RRSP where I DRIP stocks.
The early bird gets the worm, but the second mouse gets the cheese.
audentis Fortuna iuvat
Deal Fanatic
Jan 21, 2014
5673 posts
3130 upvotes
FlyOverMyDoodle wrote: I have the buying power required to fill my trades and yet I always get a 'This order will be routed to an Investment Representative for review.' when I try to sell puts.

Started off with GME but even when I try for something else like PSTH or CCIV it always gets rejected, anyone know if TD has restrictions or why this is occurring? I have level 4 options trading and have sold puts before but for these securities I always encounter this... anyone have any broker recommendations that have no issues like this or how I can resolve this? Phone lines take too long to get through so wanted to know if anyones been through this
They routed to rep because they want to make sure you have enough margin to cover if the stock goes to $0, I assume you are selling naked puts here. each time when they rejected, you have enough cash/margin to cover?
Newbie
Nov 29, 2020
24 posts
18 upvotes
It's an internal restriction they have based on your capital. You can call and they can review it manually and potentially bump you up to a more relaxed restriction.

I had this issue myself with one of my accounts but not the other, when I phoned in they were able to set the restriction to the same as the others which solved the issue.
[OP]
Sr. Member
Mar 14, 2015
763 posts
60 upvotes
Edmonton
mkl38s wrote: They routed to rep because they want to make sure you have enough margin to cover if the stock goes to $0, I assume you are selling naked puts here. each time when they rejected, you have enough cash/margin to cover?
Is buying power not regarded in this case?I had assumed I just had to meet the 'buying power required' piece because when I sell a 20 put on PSTH, it can go through with no review for say May expiry but when I try the same thing for Sept expiry, it has to be reviewed...

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