Re:20yo Robinhood Customer Commits Suicide After Seeing $730...
by mylons on Wednesday June 17, 2020 @02:42PM
(#23555073)
yup. robinhood SUCKS at handling short term options spreads. if a leg gets exercised and you all of a sudden own or have to sell a ton of stock, they don't tell you the other leg will get exercised to cover. they just let you stew with the weird after effects in your account. the founders and insiders are all going to be extraordinarily wealthy while things like this happen and some lives are outright ruined or kinda ruined.
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Re:20yo Robinhood Customer Commits Suicide After Seeing $730...
by manigandham on Wednesday June 17, 2020 @03:00PM
(#23555314)
All brokers do this because the each option leg is a separate trade and one executes in response to the other, and can happen on different days. It's the same as owning stock and having ITM options that will close that equity position, but the totals will be skewed until then. Broker UIs can be made clearer but these are basic fundamentals.
If anything, it highlights the fact that these people should not be trading in the first place if they don't understand their own positions, and brokers need a much stricter gate before allowing them access.
Re:20yo Robinhood Customer Commits Suicide After Seeing $730...
by mylons on Wednesday June 17, 2020 @03:42PM
(#23555810)
most brokerages will exercise the other leg for you immediately and be around to respond if this happens to you. robinhood does none of that. there’s no customer service for DAYS.
Re:20yo Robinhood Customer Commits Suicide After Seeing $730...
by manigandham on Wednesday June 17, 2020 @05:35PM
(#23557058)
If it’s exercised early then you won’t know until the next day. There will always be some discrepancy. It’s up to you to understand what trade you made and how your positions will exit.
That being said, yes customer support could help him understand what’s happening.