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stout
Arizona Fan
Back in God's Country
Member since Sep 2006
139354 posts
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Which one of you was this?




Poor guy wrote some in the money puts and had no idea what his obligation was. Probably had no idea what he was writing but I am not sure how Robinhood gave him that much margin to begin with.


Even if this was a spread and only the short was exercised I doubt he knew what he was doing and what his obligation was.
This post was edited on 6/12 at 1:55 pm


iAmBatman
USA Fan
The Batcave
Member since Mar 2011
8787 posts
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re: Which one of you was this?
r/wallstreetbets is a scary place


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11
HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
30711 posts

re: Which one of you was this?
Can you explain what I'm looking at? I dont understand it either


deeprig9
Georgia Fan
Member since Sep 2012
33948 posts

re: Which one of you was this?
Robinhood is going to sell his seat on the exchange.


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10
jimbeam
USA Fan
University of LSU
Member since Oct 2011
54459 posts

re: Which one of you was this?
I have no idea what I am looking at.


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31
barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
47088 posts

re: Which one of you was this?
quote:

Can you explain what I'm looking at? I dont understand it either


He sold puts in exchange for a premium, as you are basically selling insurance. Say you own 10,000 shares of a company and you can’t sell for 1 year, then you buy puts for a premium for the right to be able to sell them to the person at an agreed price, the strike price. Hence the term put as you are putting the shares on that person.That’s the only money you can make selling puts. If the security falls below the strike price then you can be liable for as much as the strike price - 0, say the company went bankrupt.

This dude obviously sold a bunch of SPY shares that were in the money and likely had a large premium and have now the security has tanked. Granted he still owns the SPY shares so it’s not like he lost 600k. Usually you can just settle up the difference.
This post was edited on 6/12 at 2:29 pm


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11
Upperdecker
LSU Fan
BR
Member since Nov 2014
17762 posts

re: Which one of you was this?
All I know is I’m not fricking with options. Good way to lose your arse real quick


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30
Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
29493 posts

re: Which one of you was this?
T’was me. I’m on a break from sucking dicks behind circle K to cover the margin call


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40
Pendulum
New Orleans Pelicans Fan
Member since Jan 2009
4046 posts

re: Which one of you was this?
You dont have to jump through hoops on Robin hood to start option trading?

I use etrade and you have to apply, and then theres different levels you can work up. The first level is just stocks you have owned for a certain period. Think it's more than a year? BA would be the only stock I could trade options on. Not touching that atm


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