https://www.cnn.com/2020/06/19/business/robinhood-suicide-alex-kearns/index.html
Article shows a student using robinhood committed suicide when the app showed 700k debt!
#Robinhood #health #WLB
Want to see the real deal?
More inside scoop? View in App
More inside scoop? View in App
blind
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
FOLLOWING
Industries
Job Groups
- Software Engineering
- Product Management
- Information Technology
- Data Science & Analytics
- Management Consulting
- Hardware Engineering
- Design
- Sales
- Security
- Investment Banking & Sell Side
- Marketing
- Private Equity & Buy Side
- Corporate Finance
- Supply Chain
- Business Development
- Human Resources
- Operations
- Legal
- Admin
- Customer Service
- Communications
Return to Office
Work From Home
COVID-19
Layoffs
Investments & Money
Work Visa
Housing
Referrals
Job Openings
Startups
Office Life
Mental Health
HR Issues
Blockchain & Crypto
Fitness & Nutrition
Travel
Health Care & Insurance
Tax
Hobbies & Entertainment
Working Parents
Food & Dining
IPO
Side Jobs
Show more
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
Apparent suicide by 20-year-old Robinhood trader who saw a negative $730,000 balance prompts app to make changes
comments
Suppose you buy or sell a put option spread. Let's say you sold it with the higher strike 100 and the lower strike 95. Your actual exposure is $500 (100 shares times the difference in strikes). Anyway, so during raining the position your account will quickly be assigned the shares before you then sell them off at a loss. During the assignment phase, it can show your buying power as negative that amount, in my example $10k ($100 x 100 shares), and so your account looks wrecked. If you could see when you actually get the shares (not likely here), your account will still have negative buying power but it will look like you gained $10k in shares. These are offsetting, but your buying power will remain negative until you sell the shares to close the position. In this case the other option leg is exercised and you sell the shares for a $500 loss. So, your account will be net minus $500 after a day or two, not minus $10k.
There is a little more trickiness, but that is the gist. Buying power was impacted since his sold put spreads were exercised.
https://www.bloomberg.com/news/articles/2019-11-05/robinhood-has-a-glitch-that-gives-traders-infinite-leverage