Why would a brokerage disallow options on a security? via /r/wallstreetbets #stocks #wallstreetbets #investing


Why would a brokerage disallow options on a security?

Just what the title suggests. I’m curious if someone knows. I’ve been long on AGCO for quite a while, and as it’s continued to dip I’ve repositioned and sold covered calls, bought long calls etc., couple days ago it dipped hard (thanks Russia) I bought back my covered calls and when it came back up I went to resell them and was met with a message “opening orders for this security cannot be met at this time” – this applies to buying calls as well as selling calls. I noticed several months back that the farthest out call was Aug 2022 (not exactly a leap…).

I called Etrade (yep I’m old) and they confirmed it was just for AGCO, and the guy mentioned he didn’t have details but it was likely surrounding corporate action. At first I thought… well that sounds bad, but then I began to wonder what if it’s because the company is going to be sold? I doubt I’ve picked up on some “inside info” but I really haven’t seen that before. AGCO just beat its Q4 EPS by 75%, and pumped so hard it pulled JD up almost 5% in a day (little bitty agco)…

Not sure what to think.

Submitted March 01, 2022 at 04:23PM by Ihavethreetvs
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