So about 5 days ago this guy decides to do a box spread on his $5k robinhood cash account. He writes 500 $10 calls and 500 $15 puts. He buys 500 $15 calls and 500 $10 puts. He legs in using the credit he received to keep buying, thats how he was able to transact millions of dollars in options on a $5k account. He did this in 1 day. Bragged to everyone that if he holds to expiration, it's a free $50k. He got $300k and will have to pay $250k in 2 years. He's so confident he withdraws $10k (double the amount he had in his account)
Next day, 283 of the $10 calls get assigned to him. Robinhood closes his account and tells him THEY will close the trades and now his balance is -$57k.
Not even sure if robinhood closed out all his positions yet.
Next day, 283 of the $10 calls get assigned to him. Robinhood closes his account and tells him THEY will close the trades and now his balance is -$57k.
Not even sure if robinhood closed out all his positions yet.
