Dale Perryman is no newbie as an options trader. Yet he found himself in a helpless situation when his trade was busted – and he was not even told about it until the next day. This is a shocking story about a risk any options trader faces.
Watch how a busted trade cost Dale $116,600
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Dale Perryman
Dale Perryman is a veteran retail options trader with over 20 years of experience, managing multiple accounts and leading a large trading community on Discord. Known for his disciplined strategies, he’s a respected figure among retail traders.
A shocking $116,600 loss
In the video, Dale Perryman shares the devastating story of losing $116,600 due to a busted trade by the Chicago Board Options Exchange (CBOE). Despite his careful approach, a rule misapplication turned a defined-risk trade into a financial nightmare, highlighting risks every options trader faces.
What happened in the busted trade?
Dale placed a defined-risk call credit spread on the SPX. He had 10 contracts of SPX 09APR25 – 5165/5200, each sold for a premium of $2.4. This means that each contract had a defined risk of $3,260.
During a chaotic market move on April 9, 2025, triggered by news of President Trump postponing tariffs, liquidity dried up. Yet, Dale’s order for four short positions filled at $1.1. He immediately went on to close the longs.
Also, the remaining 6 spreads were closed. The Thinkorswim platform from Schwab showed that Dale was out of all positions.
Yet the next day, he found himself with a mysterious minus of $116,600. And there was a voice message from Schwab informing him that the trade closing four of the short positions had been busted by the options exchange CBOE.
Dale had an order in to close the shorts – and the order was filled at $1.1. After this, Dale proceeded to close the longs.
Why was the trade busted?
CBOE, a self-regulating exchange, can bust trades for “blatant mispricing.” In this case, the rapid market jump made Dale’s $1.10 fill may have seemem mispriced compared to the much higher prices seconds later.
However, retail traders like Dale can’t directly contact CBOE, and Schwab’s delayed notification left him helpless. Dale believes a powerful market participant may have influenced the bust, exposing flaws in the system.
The emotional and financial toll
The loss hit Dale hard, both financially and emotionally. He likened it to waking from surgery to a $116,600 medical bill after expecting coverage.
Despite the setback, support from his family and the trading community has kept him resilient. Dale’s experience underscores the unpredictability of trading, even for veterans who take calculated risks.
Dale’s fight for justice
Dale refuses to let this injustice go unchallenged, vowing to tell his story to anyone who will listen, from neighbors to the news media. He’s actively engaging Schwab, his congressman, and social media to demand accountability and prevent other traders from suffering similar losses.
Dale believes CBOE and Schwab must implement instant trade-bust notifications and create a transparent process for retail traders to appeal decisions. He also calls for shared responsibility, urging both to work with him on a fair solution and reform rules that unfairly harm traders.
Why this matters to you
A busted trade can turn a safe strategy into a disaster, as Dale’s story shows. This could happen to any options trader, beginner or expert, especially in volatile markets. Watch the full interview to understand the risks of busted trades and learn protective steps.
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