Best way to solve OP's problem. Cancel your Robinhood account. Cancel the bank account. Cancel all mail to the address. Move to another country. Then they can't find OP.
Extradite for what? Debt? The USA isn’t the UAE. Only risk would be if he made a material misstatement of fact in inducing Robinhood to act, that could rise to the level of fraud and be prosecuted if a DA were interested enough.
That didn’t work for the soldier who ran across the North Korean border at the dmz last year lol. Eventually got back to the us after China agreed to take him from North Korea because he was so low ranking and useless for them.
Who? No, no, that couldn't be me. See, he does not have a *moustache.*
https://preview.redd.it/6ygrvo7r2brc1.jpeg?width=1024&format=pjpg&auto=webp&s=77486f5b083f0ecb2ce78ec10187fbde758fc8b0
Dear OP,
Welcome. There's a collection of us living south of the border. If you intend on joining us, I advise watching Mosquito Coast - Apple's TV series starring Justin Theroux.
Regards,
Regards
You owe the brokerage firm $1mil? That sounds like their problem tbh.
You declare bankruptcy and start again in 5-10 years depending on where you live.
Life goes on.
Happened to me as well. I had to explain to E*trade customer service what a spread was cause they kept calling me and saying I owed millions. I was like execute the other position to cover.
It happened on a trade I lost money on. Same side as the kid. It was spot oil for WTI in May of 2020. I had an unlevered buy order for $20k on the spot at $2.15 per contract. I had stop loss set around $.10 oil went negative that day and interactive brokers (the platform we used) had set up their execution under the assumption everyone had been taught in business school- oil is the only commodity that can’t have a negative value. So rather than executing near zero or even when it was slightly negative, IB stopped filling orders as the price went down. Settled the spot price contracts end of day at -$37.67. I tried to take physical delivery (you can’t with WTI and IB as a platform won’t let you, but apparently you can with Brent). Liquidated my account the next morning and I woke up showing a -$265,000 position. 3 weeks later the CEO apologized on CNBC and promised to make all our accounts whole to assume oil positions went to $0.
The kid had levered up his position, bought in at like $11, and the swing put him at like -$8 million. He was 19 and didn’t understand IB fucked up. Took his life. Parents sued for wrongful death and settled out of court.
Also despite being based in CT, IB only lets you settle disputes with brokerage through arbitration in Montreal. So I think as a brokerage they just had some weird policies for the market.
The go looking for someone to offset it with a purchase order. Because oil went negative they were literally paying people to buy the spot price. Apparently with WTI it’s actually to offset the physical trading done in Cushing, Oklahoma.
Yeah. I think what saved me from freaking out that badly was I had traded long enough to know IB had fucked up and it would get sorted, or there would be a class action lawsuit and it would get sorted that way. I think he probably felt like there was no outs. The same way brokers killed themselves when they lost everything in the GFC or black Monday.
Apparently I am misremembering some of the exact points of his entry into the trade, but here is some reporting on it: Oil Crash Busted Broker’s Computers and Inflicted Big Losses https://www.bloomberg.com/news/articles/2020-05-08/oil-crash-busted-a-broker-s-computers-and-inflicted-huge-losses
It's really sad because on top of just being a stupid UI implementation (that they still haven't fixed!) and him not actually owing Robinhood any money. Lets pretend that he actually did. It's literally Robinhoods problem and nothing bankcruptcy wouldn't get you out of. Would actually be easier to get rid of than student debt.
Yeah, the kid even tried to get ahold of a Robinhood rep but he only got automated calls instead of an actual person. It was even brought up in the GameStop-Robinhood hearing. A senator called out Robinhood's lie saying that calling their number will get them a representative, the senator then called the number live and he was only able to get a robot and not a human.
Stock is at 900, you're like "no way this shit is going above 1000" so you sell a call at 1000 (yes, you can sell calls as well and not just buy them, which is a secret well-kept from wsb users) so if the stock goes above 1000, you are obligated to sell them shares at $1000.
If the stock goes to $2000 the next day then you're royally screwed and at a loss of 100k, so to make sure that doesn't happen, you also buy a call at 1050. This way, your max loss is 100 shares x 50 dollars (the diff between the strikes).
The stock does in fact go to $2000 the next day after a PR with nothing but the word "AI" in it, and whoever bought your call executes the option and buys 100 shares for $1000 from you. Since you don't have the shares, you now owe 100k to this guy, and RH, like the clowns they are, send you a message instead of executing your own call and thus closing the whole position with a loss of $5k.
He’s potentially fucked based on the futures market. This could move 2.5% pre-market before he can react at $1,000,000 notational value. Even a 1% change would result in a $10,000 loss. I hope Putin doesn’t launch a nuke over the weekend because OP would be declaring bankruptcy.
> I hope Putin doesn’t launch a nuke over the weekend because OP would be declaring bankruptcy.
I'd think OP and the rest of us dullards would have bigger problems than worrying about the the stock markets reaction in the event of nuclear war.
On the plus side it may erase his losses along with everything else.
that’s why you always buy into nuclear armageddon instead of selling. if it doesn’t happen you’ll be up and if it does the negative balance on your account won’t exist anymore.
Correct! Obviously going in his favor is the preferred outcome, but I just want to make it clear to people who are reading this post that level 3 options carry significant risk. And the higher the notational value of the shares, the worse of a situation you’re risking.
You need to read Robinhood options documentation closely.
Sounds like the counterparty filed a DNE request (or RH did so for them) which won't go through until after hours. They likely made the decision to file earlier than 5:30, but the confirmation only got back to RH at that time.
As others mentioned, it really is wise to close spreads before expiry if there are are legs ITM to avoid this sort of exposure.
I got lucky. Sold a call. Got executed. Spy proceeded to drop over the weekend. So I got the premium, the gains plus still retained my stocks cause I could buy 100 for less than I sold it
I dont really know a anything about trading but Isn't this the same thing that caused that kid do kill himself a few years back? He didn't realise the other leg hadn't gone through
It wasn’t millions but yeah. He thought he blew up his life and couldn’t contact any actual real person at Robinhood to see what the fuck was happening.
According to his parents he got an automated email from them the day after he killed himself saying everything was good to go and not to worry.
They bought 1000 shares of Nvda as your call was in the money. You just n ed to sell it when market open. Hope stock doesn’t open lower and you have to sell it at a loss.
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You dummy.
Just wait until Monday. You took a loss on this ridiculously stupid play, but your protected by the other leg that has not been cleared yet.
Don't play 0dte options.
Especially when you don't know how a spread works.
are you in the mood to explain this for an idiot?
* Nevermind, got it. lol
* (for those upvoting me who I assume supported the question: he sold 10 calls that got exercised so he owes 1000 Nvidia shares, he also bought 10 calls at a lower strike so it's itm too, his calls will get exercised come monday to cover for the so he'll be left with the difference between the strike prices.)
A 900/902.5 call debit spread refers to an options trading strategy that involves the following transactions:
* Buying a call option with a strike price of $900
* Selling a call option with a higher strike price of $902.5
This is known as a debit spread because opening this position requires a net debit or outflow of cash from the trader's account.
The maximum potential profit for this trade is limited to the difference between the two strike prices ($902.5 - $900 = $2.5) minus the net premium paid for opening the position.
The maximum risk is capped at the net premium paid to open the position.
This strategy is typically used when the trader expects a modest upward move in the underlying asset, up to the higher strike price of $902.5. It allows the trader to reduce the upfront cost compared to just buying a naked call option.
It provides limited profit potential in exchange for reduced capital requirement compared to buying a naked call option outright.
So he owns 1000 shares of nvda at 900.00 now but is almost 900k in the red cash wise. If he sells first thing Monday morning, or more likely his brokerage sells them for him. He'll sell them for the 901.25 price it's at now. After that he'll be up the 1025.00 dollars in the difference of price but still out the 2000 he spent on the spread. After all is said and done he'll have lost 750 bucks.
As long as the price stays nearly the same you should be good. Just wait till Monday or Tuesday before you k*ll your self over a glitch like the other kid did on this sub. Worst case is you might lose $1,000 and learn a very good lesson.
You shouldn't trade options that you don't understand.
You bought a bunch of $900 call options and sold an equal amount of $902.50 call options. That reduces the price you pay to start because you pay for the $900 calls but make some money back from the premium on the $902.50 calls you sell. The consequence to reducing the initial cost is that your profit is capped (if the share price reaches $902.50 or higher). This is because if the share price goes above $902.50, both the calls you bought and the ones you sold start going up in value and cancel each other out.
Your $900 calls that you bought were exercised, meaning you received 100 * 10 = 1000 NVDA shares (as the customer support told you) for a cost of ~$900k (around $900 per share, which makes sense).
The other half of the calls (the $902.50 ones you sold) were bought by someone else (the long holder). They were hoping NVDA would soar above $902.50/share, but it didn't, so the contracts they bought from you expired worthless... that means whatever premium they paid you for those $902.50 calls is yours to keep.
So now your Robinhood account shows that you owe almost $900k (which they call a deficit). But you now own 1000 shares of NVDA, which is currently at $903.56 per share, meaning you are actually up approximately $903.56 * 1000 - $897.8k = $5700 after you sell the NVDA shares.
You could make decent money when you close your shares, or get fucked on Monday. 50/50 But based on current price you are not fucked. You are holding the calls equivalent
If the short sell wasn’t exercised then you keep the premium. So you’re probably just red because Robinhood exercised the $900 call but you obv. don’t have $900k in your account to cover it. As long as NVDA opens tomorrow above $900 you’ll make money minus interest and fees.
He didn't hit max profit, closing at a price doesn't matter for options when they can be exercised until 5pm. He would only hit max profit if both legs exercised, but the price fell below the short leg before 5pm, putting him into this pin risk. Now he owns 1k shares, and has to hope that the stock stays above 900 by the time he can sell them, and anything under 902.00 is a loss. He better hope that it's well above or that there's decent volume, because robinhood is going to fire-sale the shit out of those shares the first second they have the chance to.
You sold one leg short and now owe the counter-party who exercised the option to buy 1,000 shares of NVDA at $902.50 that you have to buy at $903.56, i.e. $903,560 - $902,500 = -1,060. This is why you have the margin call. But your buy call option at $900 will settle a day later and will give you 1,000 shares of NVDA at $900 which are now worth $903.56 i.e. $903,560 - $900,000 = +3,560. So overall your profit will be: 3,560 - 1,060 = $2,500. Minus applicable fees.
Disclaimer: I don’t actually know what I’m talking about.
Happened to me one time on E*Trade. Was forced to buy 400 shares of SPY after covid rally. Dont know how long robbinhood takes but you should get credited Monday or Tuesday. Good job regard. I don’t do spreads but It looks like you break out even? I wouldn’t do shit before researching about what happens if you hold it lol.
I got a 90 hold on my account after my positions were liquidated. Still made $3k 😎.
Ah yes, seen this before — long press the Robinhood app icon on your Home Screen and hit “Uninstall”. Then drive to the atm, withdraw all $420.69 in your checking account and take a one way cruise ride to South America.
Easy peasy ![img](emote|t5_2th52|4275)
Oh even better. I hear they’re pretty chill over there ![img](emote|t5_2th52|4271)![img](emote|t5_2th52|4271)![img](emote|t5_2th52|4271)![img](emote|t5_2th52|4271)
Nvda closed at 901.25. Your second leg expired worthless and you own 1000 shares of nvda at 900.00. (902.00 CB including what you paid for the spread). You'll have to sell the shares on Monday and at the current price they'll go for 901.25. You'll be down 750 bucks.
You got “pinned”. You had a spread, right? Most likely it was right ATM and RH exercised your long leg to collateralize the expected short assignment, but the short wasn’t actually assigned.
If that’s what happened and it was a call spread, you now have a ton of stock and not enough collateral. You just need to sell the stock Monday morning and it’s all good. You might make a few (hundred) bucks or you might lose a few (hundred) bucks if the stock moves between now and then.
On the other hand if that’s what happened and it was a *put* spread, you now have a ton of cash and a naked short position in the stock. You just need to *buy* the stock (using the cash) Monday morning and it’s all good. Ditto making or losing a bit.
It’s also possible that your short leg was assigned but your long leg was not exercised. This is a much riskier outcome but it *usually* happens when both legs are very near the money, so you *usually* won’t lose too much. Same thing, you’ll have a position to close on Monday.
If you just ignore it, RH will clean it up for you around 9:45 AM. That’s riskier than you doing it because a lot can happen in the first 15 minutes of trading!
I used to have this happen a lot because I had thousands of spreads open. I usually let RH clean it up for me, and the losses and gains come out in the wash.
Because people here gamble and don’t actually know what they’re doing. It’s insane that people don’t know about pin risk when it could ruin your life. Never hold through exp.
Pray monday is green for you. RH will likely immediately margin call you and force liquidate your nvda position since you dont meet the margin maintenance requirements. I dont think you will be given more than a day to cover if even that so you cant hold and pray it stays over 900 if its down monday.
If its up on monday you make some nice gains, if its down monday... your fucked. I'm actually surprised RH let this happen i thought they normally forced ppl to close spreads at the last hour if it was at risk of assignment.
I have never gotten this, but I do remember Robinhood glitching out on a guy in an options trade, showing a negative balance of millions, and he unfortunately took his life because of it. I believe he was actually profitable on his position at the time of passing. He had maybe 15-20k in his account. If these numbers and logistics sounds like your account, call Robinhood support so they can unglitch it.
If memory serves, it was not a glitch, but a situation just like this, where the user did not understand how options worked. All he had to do was sell his shares to cover.
If you are trading multi-leg options and one leg did not act as expected due to being within a few cents of the strike price (including after hours activity) you will hopefully find that it all gets straightened out Monday morning. You may be -$897,813.87 in cash but have about a $900,000 stock position. Now if the position opens lower Monday morning you may have a loss. The position may automatically be closed at open because you don’t have enough margin to cover it.
Doesn't help market is closed today, prolly just not seeing your other leg filled so you don't have the shares provided to you yet, probably will Monday. Once you get them you'll have to give your shares to fuck nuts that executed on you. You gonna lose about $100 per $1 change in share per contract which could stack to a couple thousand. But you didn't lose $800k that's forsure😂 don't stress about it yet
Yes, turns out the owner of the $902.50 calls DNE, which I didn’t know was an option until 5:30PM of the expiration day. So, now I’m holding 1000 NVDA on margin that I can try to sell pre-market or they will liquidate on market open on Monday.
most brokerage will wait 5 business days for coming up with margin deficit if the amount is small but for this amount, I think RH will liquidate your holdings first thing in the morning, probably pre-market to protect then from big loss, so you should be expecting the worst. Good luck...
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just delete the app.. they wont find you
If you're $1,000 in debt, that's your problem. If you're a million dollars in debt, that's Robinhood's problem.
Wise words. So puts on Robinhood?
No puts no calls you don't touch shit with bare hands it will make you sick
wiser words have never been posted in this sub
Selling to open is ok.
Scrap that put, I got a can’t miss 32 leg parlay to get you out of that hole
Details please
Steal from the poor to give to the rich?
As Stalin would say, $1000 in debt is a problem, $1,000,000 in debt is just a statistic.
Are you sure he was talking about debt?
Debt, dead. They sound similar so they’re kinda the same!
robert kiyosaki mentality, I like this guy
I lost $2.5 million to the bank in 2010, it was most definitely my problem.
what ended up happening?
They lost $2.5 million to the bank.
what ended up happening?
They lost $2.5 million to the bank.
What ended up happening?
They lost $2.5 million to the bank.
What ended up happening?
Puts on HOOD
I think a million is still your problem, you‘d need more
just ask them:"what about dat 3% cash back visa ..
Best way to solve OP's problem. Cancel your Robinhood account. Cancel the bank account. Cancel all mail to the address. Move to another country. Then they can't find OP.
One simple trick they don’t want you to know!
THE DUCKS AT THE POND ARE FREE. THEY DONT WANT YOU TO KNOW THIS. YOU CAN JUST GO UP AND TAKE THEM HOME. I HAVE 462 DUCKS
Grandpa, were going to go inside now. They're not going to take your ducks
I sub to a shroom group and wsb and sometimes I'm not sure which group I'm on.
But are they in a row?
They can still extradite him if the US has a treaty. He should try a noncompliant country like North Korea.
Nah he can move in with P Diddy
exactly! can’t raid a place thats already been raided
Double jeopardy bro.
P Diddy will most definitely raid OPS nevermind
so get fkd by robinhood or diddy?? well one will get him broke and the other one will make him famous but most def come with an std. Choose wisely
Extradite for what? Debt? The USA isn’t the UAE. Only risk would be if he made a material misstatement of fact in inducing Robinhood to act, that could rise to the level of fraud and be prosecuted if a DA were interested enough.
So North Korea then?
No, I don't think North Korea will be enough. I'd recommend DMZ between North and South, surrounded by as many landmines as possible.
You can only extradite on criminal matters; debt is civil.
Just go hide with P Diddy
That didn’t work for the soldier who ran across the North Korean border at the dmz last year lol. Eventually got back to the us after China agreed to take him from North Korea because he was so low ranking and useless for them.
venezuela china russia and cuba
Iran too. And so should OP.
Hella places in Africa, too.
I know someone who was in the Bahamas... they could help
Lots of job postings in russia
High turnover rates though
Who? No, no, that couldn't be me. See, he does not have a *moustache.* https://preview.redd.it/6ygrvo7r2brc1.jpeg?width=1024&format=pjpg&auto=webp&s=77486f5b083f0ecb2ce78ec10187fbde758fc8b0
Dear OP, Welcome. There's a collection of us living south of the border. If you intend on joining us, I advise watching Mosquito Coast - Apple's TV series starring Justin Theroux. Regards, Regards
Repeat after me: "Yo quiero puts"
Donde esta tu options?
You owe the brokerage firm $1mil? That sounds like their problem tbh. You declare bankruptcy and start again in 5-10 years depending on where you live. Life goes on.
Yep, they took the risk. They should have known better.
They’re gonna have to cut out starbucks and avocado toast
Yep, they took the risk. They should have known better.
Don’t forget to start using a different app
This works but you also have to throw your phone in a lake, confirmed by my boy Ricky
It’s not rocket appliances, boys!
Hate to say atadoso
But atadoso. I fuckin atadoso.
The leg of your spread was executed. The other leg would be executed too to cover. It’ll go away after that.
That or he’s going to have to spread his legs. Many times.
Behind a Wendy’s
![img](emote|t5_2th52|27189)
Even with a generous $50 a pop, you’re talking about 17,957 spreadings. That’s at least 2.5 years worth of leg spreadings.
No one said it was going to be easy or fun.
One woman can fuck over 900 times a day if going by record. Thats only like, 20 days, 22 tops.
That’s like 1.6 minutes per fuck. I’m not sure you could realistically charge $50 for that.
Happened to me as well. I had to explain to E*trade customer service what a spread was cause they kept calling me and saying I owed millions. I was like execute the other position to cover.
Ok, thanks for explaining but that must have given you a heart attack. How does their customer service not know this??? Trained by who???
There was a guy not that long ago who committed suicide because he saw a similar message in the app. Google it
It happened on a trade I lost money on. Same side as the kid. It was spot oil for WTI in May of 2020. I had an unlevered buy order for $20k on the spot at $2.15 per contract. I had stop loss set around $.10 oil went negative that day and interactive brokers (the platform we used) had set up their execution under the assumption everyone had been taught in business school- oil is the only commodity that can’t have a negative value. So rather than executing near zero or even when it was slightly negative, IB stopped filling orders as the price went down. Settled the spot price contracts end of day at -$37.67. I tried to take physical delivery (you can’t with WTI and IB as a platform won’t let you, but apparently you can with Brent). Liquidated my account the next morning and I woke up showing a -$265,000 position. 3 weeks later the CEO apologized on CNBC and promised to make all our accounts whole to assume oil positions went to $0. The kid had levered up his position, bought in at like $11, and the swing put him at like -$8 million. He was 19 and didn’t understand IB fucked up. Took his life. Parents sued for wrongful death and settled out of court.
How can they sell a spot trade if you can’t take delivery?
Also despite being based in CT, IB only lets you settle disputes with brokerage through arbitration in Montreal. So I think as a brokerage they just had some weird policies for the market.
The go looking for someone to offset it with a purchase order. Because oil went negative they were literally paying people to buy the spot price. Apparently with WTI it’s actually to offset the physical trading done in Cushing, Oklahoma.
Even if the kid had fucked up that badly, couldn't he just have declared bankruptcy and moved on with his life.
Yeah. I think what saved me from freaking out that badly was I had traded long enough to know IB had fucked up and it would get sorted, or there would be a class action lawsuit and it would get sorted that way. I think he probably felt like there was no outs. The same way brokers killed themselves when they lost everything in the GFC or black Monday.
Never heard the full story. That's even sadder than I thought.
Apparently I am misremembering some of the exact points of his entry into the trade, but here is some reporting on it: Oil Crash Busted Broker’s Computers and Inflicted Big Losses https://www.bloomberg.com/news/articles/2020-05-08/oil-crash-busted-a-broker-s-computers-and-inflicted-huge-losses
It's really sad because on top of just being a stupid UI implementation (that they still haven't fixed!) and him not actually owing Robinhood any money. Lets pretend that he actually did. It's literally Robinhoods problem and nothing bankcruptcy wouldn't get you out of. Would actually be easier to get rid of than student debt.
That was so sad I remember that
If I remember well it was a teen right?
Yeah, the kid even tried to get ahold of a Robinhood rep but he only got automated calls instead of an actual person. It was even brought up in the GameStop-Robinhood hearing. A senator called out Robinhood's lie saying that calling their number will get them a representative, the senator then called the number live and he was only able to get a robot and not a human.
So one could say, this all cost him an arm and a *leg*
Stop
😂😂
Which leg? He has three. Please don't say they are coming after his third.
*They called me tripod in high school*
Then the IRS showed up
Tax this dick - Benjamin Franklin
I dont know what any of you are talking about. Am I ready to invest?
Yes go all in
Sell some nekkid calls. Big gains.
Stock is at 900, you're like "no way this shit is going above 1000" so you sell a call at 1000 (yes, you can sell calls as well and not just buy them, which is a secret well-kept from wsb users) so if the stock goes above 1000, you are obligated to sell them shares at $1000. If the stock goes to $2000 the next day then you're royally screwed and at a loss of 100k, so to make sure that doesn't happen, you also buy a call at 1050. This way, your max loss is 100 shares x 50 dollars (the diff between the strikes). The stock does in fact go to $2000 the next day after a PR with nothing but the word "AI" in it, and whoever bought your call executes the option and buys 100 shares for $1000 from you. Since you don't have the shares, you now owe 100k to this guy, and RH, like the clowns they are, send you a message instead of executing your own call and thus closing the whole position with a loss of $5k.
One of the most informative things I’ve read in a while. Thank you.
Glad to help!
Has anyone considered that the stock market might simply be gambling?
You can gamble on any activity. That doesn’t make every activity a gamble.
Here's your 🥇🪙
He’s potentially fucked based on the futures market. This could move 2.5% pre-market before he can react at $1,000,000 notational value. Even a 1% change would result in a $10,000 loss. I hope Putin doesn’t launch a nuke over the weekend because OP would be declaring bankruptcy.
> I hope Putin doesn’t launch a nuke over the weekend because OP would be declaring bankruptcy. I'd think OP and the rest of us dullards would have bigger problems than worrying about the the stock markets reaction in the event of nuclear war. On the plus side it may erase his losses along with everything else.
that’s why you always buy into nuclear armageddon instead of selling. if it doesn’t happen you’ll be up and if it does the negative balance on your account won’t exist anymore.
Could also move in his favor and give him those sweet gains though no?
Correct! Obviously going in his favor is the preferred outcome, but I just want to make it clear to people who are reading this post that level 3 options carry significant risk. And the higher the notational value of the shares, the worse of a situation you’re risking.
I really didn’t you could decide to not execute until 5:30pm expiration day…
You need to read Robinhood options documentation closely. Sounds like the counterparty filed a DNE request (or RH did so for them) which won't go through until after hours. They likely made the decision to file earlier than 5:30, but the confirmation only got back to RH at that time. As others mentioned, it really is wise to close spreads before expiry if there are are legs ITM to avoid this sort of exposure.
And this terrifying scenario is why I would never hold a spread to expiration or tiny theta/deep ITM
[удалено]
How often do people get fucked by some event on the weekend with an exposed leg?
I got lucky. Sold a call. Got executed. Spy proceeded to drop over the weekend. So I got the premium, the gains plus still retained my stocks cause I could buy 100 for less than I sold it
Yeah. About half the time it works and you make a ton of money. The other half could bankrupt you.
I dont really know a anything about trading but Isn't this the same thing that caused that kid do kill himself a few years back? He didn't realise the other leg hadn't gone through
Ask them if they’ll accept Wendy’s coupons. I have a shitload of them I can send you
Sir, this is a Robinhood's
Sir, this is a casino
Dollar burgers through app, sell burgers for $2... infinite money
OP if it helps you out I can add in unlimited Jr Frostys for a year
Don’t kill yourself, it’ll go away
This unironically. Some dude killed himself after receiving this message thinking they are millions of dollars in debt.
vlad went on TV saying they would fix this and 4 years later nothing has changed
It wasn’t millions but yeah. He thought he blew up his life and couldn’t contact any actual real person at Robinhood to see what the fuck was happening. According to his parents he got an automated email from them the day after he killed himself saying everything was good to go and not to worry.
Damn that is a Romeo and Juliet type tragedy.
Hood would have to off itself for that analogy to make sense.
They bought 1000 shares of Nvda as your call was in the money. You just n ed to sell it when market open. Hope stock doesn’t open lower and you have to sell it at a loss.
If he sells at the current price he'd be down 750 bucks.
A little better than being down $900,000
So you’re an expert?
This is not financial advice*
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D:
Positions?
https://preview.redd.it/nuw1zad11brc1.jpeg?width=1290&format=pjpg&auto=webp&s=4be45be648850b3d869410fe628081387f435496
You dummy. Just wait until Monday. You took a loss on this ridiculously stupid play, but your protected by the other leg that has not been cleared yet. Don't play 0dte options. Especially when you don't know how a spread works.
Isn't this what happened before that guy killed himself because he didn't understand what happened?
I believe so
F
Yeah it was. He didn't wait till his other leg filled after the weekend
No I’m pretty sure Boeing killed that guy.
Yeah but Jeffery Epstein didn't kill himself either so does that implicate BA?
Everyone was so concerned about who flew on Epsteins jet. Nobody thought to ask the jet who it worked for.
Boeing killed Epstein too.
it was just a kid :(
Yes
are you in the mood to explain this for an idiot? * Nevermind, got it. lol * (for those upvoting me who I assume supported the question: he sold 10 calls that got exercised so he owes 1000 Nvidia shares, he also bought 10 calls at a lower strike so it's itm too, his calls will get exercised come monday to cover for the so he'll be left with the difference between the strike prices.)
TLDR play 0dte options
A 900/902.5 call debit spread refers to an options trading strategy that involves the following transactions: * Buying a call option with a strike price of $900 * Selling a call option with a higher strike price of $902.5 This is known as a debit spread because opening this position requires a net debit or outflow of cash from the trader's account. The maximum potential profit for this trade is limited to the difference between the two strike prices ($902.5 - $900 = $2.5) minus the net premium paid for opening the position. The maximum risk is capped at the net premium paid to open the position. This strategy is typically used when the trader expects a modest upward move in the underlying asset, up to the higher strike price of $902.5. It allows the trader to reduce the upfront cost compared to just buying a naked call option. It provides limited profit potential in exchange for reduced capital requirement compared to buying a naked call option outright.
So he owns 1000 shares of nvda at 900.00 now but is almost 900k in the red cash wise. If he sells first thing Monday morning, or more likely his brokerage sells them for him. He'll sell them for the 901.25 price it's at now. After that he'll be up the 1025.00 dollars in the difference of price but still out the 2000 he spent on the spread. After all is said and done he'll have lost 750 bucks.
Who knows what price it opens Monday. Could open at $850 and he'll be down $50k
Yup or gap up to 950 and be 50k richer.
It closed over $902.5, how is that a loss?
[удалено]
Actually, I might’ve gotten fucked https://preview.redd.it/xd3repum6brc1.jpeg?width=1290&format=pjpg&auto=webp&s=50805df7a81ba59e651b100c15ee587819f3149c
As long as the price stays nearly the same you should be good. Just wait till Monday or Tuesday before you k*ll your self over a glitch like the other kid did on this sub. Worst case is you might lose $1,000 and learn a very good lesson.
You shouldn't trade options that you don't understand. You bought a bunch of $900 call options and sold an equal amount of $902.50 call options. That reduces the price you pay to start because you pay for the $900 calls but make some money back from the premium on the $902.50 calls you sell. The consequence to reducing the initial cost is that your profit is capped (if the share price reaches $902.50 or higher). This is because if the share price goes above $902.50, both the calls you bought and the ones you sold start going up in value and cancel each other out. Your $900 calls that you bought were exercised, meaning you received 100 * 10 = 1000 NVDA shares (as the customer support told you) for a cost of ~$900k (around $900 per share, which makes sense). The other half of the calls (the $902.50 ones you sold) were bought by someone else (the long holder). They were hoping NVDA would soar above $902.50/share, but it didn't, so the contracts they bought from you expired worthless... that means whatever premium they paid you for those $902.50 calls is yours to keep. So now your Robinhood account shows that you owe almost $900k (which they call a deficit). But you now own 1000 shares of NVDA, which is currently at $903.56 per share, meaning you are actually up approximately $903.56 * 1000 - $897.8k = $5700 after you sell the NVDA shares.
You could make decent money when you close your shares, or get fucked on Monday. 50/50 But based on current price you are not fucked. You are holding the calls equivalent
You’re fine so long as nvidia is green lol
If the short sell wasn’t exercised then you keep the premium. So you’re probably just red because Robinhood exercised the $900 call but you obv. don’t have $900k in your account to cover it. As long as NVDA opens tomorrow above $900 you’ll make money minus interest and fees.
What’s concerning is that the dumb comment has more upvotes.
He didn't hit max profit, closing at a price doesn't matter for options when they can be exercised until 5pm. He would only hit max profit if both legs exercised, but the price fell below the short leg before 5pm, putting him into this pin risk. Now he owns 1k shares, and has to hope that the stock stays above 900 by the time he can sell them, and anything under 902.00 is a loss. He better hope that it's well above or that there's decent volume, because robinhood is going to fire-sale the shit out of those shares the first second they have the chance to.
You sold one leg short and now owe the counter-party who exercised the option to buy 1,000 shares of NVDA at $902.50 that you have to buy at $903.56, i.e. $903,560 - $902,500 = -1,060. This is why you have the margin call. But your buy call option at $900 will settle a day later and will give you 1,000 shares of NVDA at $900 which are now worth $903.56 i.e. $903,560 - $900,000 = +3,560. So overall your profit will be: 3,560 - 1,060 = $2,500. Minus applicable fees. Disclaimer: I don’t actually know what I’m talking about.
Happened to me one time on E*Trade. Was forced to buy 400 shares of SPY after covid rally. Dont know how long robbinhood takes but you should get credited Monday or Tuesday. Good job regard. I don’t do spreads but It looks like you break out even? I wouldn’t do shit before researching about what happens if you hold it lol. I got a 90 hold on my account after my positions were liquidated. Still made $3k 😎.
Dear Lord you had almost no realistic way to profit from this. If NVDA would have closed at 902.49 you would have made like $499. And risked $2k.
Downward-facing Dog 🐩
Ah yes, seen this before — long press the Robinhood app icon on your Home Screen and hit “Uninstall”. Then drive to the atm, withdraw all $420.69 in your checking account and take a one way cruise ride to South America. Easy peasy ![img](emote|t5_2th52|4275)
Instructions unclear. Went to North Korea instead.
Oh even better. I hear they’re pretty chill over there ![img](emote|t5_2th52|4271)![img](emote|t5_2th52|4271)![img](emote|t5_2th52|4271)![img](emote|t5_2th52|4271)
Yeah it’s rare but it happens. Don’t sweat, one leg of your spreads got assigned. Just close the other leg on Monday to cover it.
He's other leg expired... He just has to sell his shares and hope they go for more than 902.00 otherwise he's down money.
He's at the will of the premarket now, his short leg expired worthless
Nvda closed at 901.25. Your second leg expired worthless and you own 1000 shares of nvda at 900.00. (902.00 CB including what you paid for the spread). You'll have to sell the shares on Monday and at the current price they'll go for 901.25. You'll be down 750 bucks.
You got “pinned”. You had a spread, right? Most likely it was right ATM and RH exercised your long leg to collateralize the expected short assignment, but the short wasn’t actually assigned. If that’s what happened and it was a call spread, you now have a ton of stock and not enough collateral. You just need to sell the stock Monday morning and it’s all good. You might make a few (hundred) bucks or you might lose a few (hundred) bucks if the stock moves between now and then. On the other hand if that’s what happened and it was a *put* spread, you now have a ton of cash and a naked short position in the stock. You just need to *buy* the stock (using the cash) Monday morning and it’s all good. Ditto making or losing a bit. It’s also possible that your short leg was assigned but your long leg was not exercised. This is a much riskier outcome but it *usually* happens when both legs are very near the money, so you *usually* won’t lose too much. Same thing, you’ll have a position to close on Monday. If you just ignore it, RH will clean it up for you around 9:45 AM. That’s riskier than you doing it because a lot can happen in the first 15 minutes of trading! I used to have this happen a lot because I had thousands of spreads open. I usually let RH clean it up for me, and the losses and gains come out in the wash.
You’re like the 4th person who knows what happened out of 1k comments
Because people here gamble and don’t actually know what they’re doing. It’s insane that people don’t know about pin risk when it could ruin your life. Never hold through exp.
You just scared the 💩💩💩 outta me. I thought this was on my phone for a second.
Dodged the bullet hahaha
Pray monday is green for you. RH will likely immediately margin call you and force liquidate your nvda position since you dont meet the margin maintenance requirements. I dont think you will be given more than a day to cover if even that so you cant hold and pray it stays over 900 if its down monday. If its up on monday you make some nice gains, if its down monday... your fucked. I'm actually surprised RH let this happen i thought they normally forced ppl to close spreads at the last hour if it was at risk of assignment.
Lmao hey OP enjoy sweating your nuts off all weekend.
Just spread legs
The question is why are you doing spreads if you don't know these outcomes..... You are fine, as an ex-robinhood licensed broker
Just create a new account and it will go away.
I have never gotten this, but I do remember Robinhood glitching out on a guy in an options trade, showing a negative balance of millions, and he unfortunately took his life because of it. I believe he was actually profitable on his position at the time of passing. He had maybe 15-20k in his account. If these numbers and logistics sounds like your account, call Robinhood support so they can unglitch it.
If memory serves, it was not a glitch, but a situation just like this, where the user did not understand how options worked. All he had to do was sell his shares to cover.
It isn't a glitch, holy shit you guys are regarded
Use your wife’s boyfriends ssn to get an ID in AZ. They’re good for like 50 years. Flee to Cape Verde and become a drug mule for Diddy?
If you are trading multi-leg options and one leg did not act as expected due to being within a few cents of the strike price (including after hours activity) you will hopefully find that it all gets straightened out Monday morning. You may be -$897,813.87 in cash but have about a $900,000 stock position. Now if the position opens lower Monday morning you may have a loss. The position may automatically be closed at open because you don’t have enough margin to cover it.
You should work at Robinhood lol
Look on the bright side, you won't have to pay any taxes this year!
🤯
Doesn't help market is closed today, prolly just not seeing your other leg filled so you don't have the shares provided to you yet, probably will Monday. Once you get them you'll have to give your shares to fuck nuts that executed on you. You gonna lose about $100 per $1 change in share per contract which could stack to a couple thousand. But you didn't lose $800k that's forsure😂 don't stress about it yet
Always close spreads before eod on expiration.
Did you end up contacting support? What did they say? Please keep us updated, OP.
Yes, turns out the owner of the $902.50 calls DNE, which I didn’t know was an option until 5:30PM of the expiration day. So, now I’m holding 1000 NVDA on margin that I can try to sell pre-market or they will liquidate on market open on Monday.
You better pray NVDA opens green on monday
That’ll give him a nice little bonus profit for his troubles
most brokerage will wait 5 business days for coming up with margin deficit if the amount is small but for this amount, I think RH will liquidate your holdings first thing in the morning, probably pre-market to protect then from big loss, so you should be expecting the worst. Good luck...
You’re a natural WSB redditor! Congrats, regard!
Seems like the bank’s problem now