Options are really the problem in that you can wipe out your equity pretty quickly. But I thought there are already roadblocks up to being cleared to trade anything other than covered calls?
20-Year-Old Robinhood Customer Commits Suicide After Seeing A $730,000 Negative Balance
- Thread starter ajacobson
- Start date
I know plenty of them too. Lol
Won't be done before November I can guarantee you that.
Options are not a problem .... the trader is the problem.
No roadblocks. When you open up a margin account the basic know-your-client questions are:
- Income
- Net Worth
- Type of option trades you would like to do.
- How long have you traded for.
It doesn't make sense. What the article says is he only had $16,000 in his account? Robinhood would not have allowed him to trade naked calls which is the most riskiest. Said he sold puts so, even then, they would have capped the puts he could have sold to his capital. No broker would be dumb to give him margin when he only had $16,000? Only thing that would make sense is he had say $100,000 or more enabling him to sell more put options. Still, hard to see how he could have lost $700,000?
Futures do not have a PDT rule. Not funny?
And somehow RH will be blamed for it. Risk disclaimers will no longer be enough to protect firms. Even as a loser, you must win.