Bought a credit spread on MSFT before market lost 5% and got assigned for the first time last light. Boy did I think that I really messed up for a second. Still don’t fully understand the whole “you might not want to exercise your put, as it still has extrinsic value, but also you owe us 40k”
https://i.redd.it/f4zrgbhczrhd1.jpeg
Posted by Grabeyboi
27 Comments
Welcome to the crew lad!
Hahahahahha regard. Options my regard.
😂😂😂😂😂😂
Can someone explain how this is a positive outcome?
Spreads are for nerds… Nerds don’t get pussy… OP… Are you a virgin?
I heard Wendy is hiring bro
Isn’t this what made that kid go long on rope?
Robinhoods true purpose is to get random people to off themselves. Otherwise they would have fixed this by now
https://preview.redd.it/wf4qv24lkthd1.jpeg?width=1170&format=pjpg&auto=webp&s=d802fc752a0856edf7a79c41ff872fbb068f7786
First time? In my case, RH automatically sold the shares on Monday 24hr market. The interest payment over the weekend really hurt…
This is scary as shit. 
Sell on Monday or 
There was a kid a while ago that killed himself because of this exact situation. Was a way larger amount shown tho, like 400k.
Turned out he lost like 300$
https://preview.redd.it/8ksg5r0x4uhd1.jpeg?width=1284&format=pjpg&auto=webp&s=eac16bf4371b069acabf71b374c5ce8a58ce1f7d
That’s pocket change
The regarded thing to do is sell both the shares and the long put to collect the time premium remaining on the long. You already collected all the premium from the short when the other end exercised it.
I thought RH was going to be more transparent about this sort of situation after that kid who lost $300 was told he owed $400k and jumped in front of a train.
I guess RH was just full of shit? Not surprised.
Just borrow more.
whats your position? if you have a credit spread your max loss should be defined
Don’t kill yourself. It has happened before. Deficit isn’t a debt.
Troy that you?
Can someone explain how that’s not the correct balance?
Can someone explain like I’m 5
Last week I got assigned. I was -$100k for whole day.
What happened here? I just invest in etfs and basic stocks. Idk wtf any of this means
all of my stocks are managed by someone else, but sometimes i browse this sub randomly when i see it on the front page. can someone explain this to me?
It goes away if you just close the app.
I had a moment like this.
I had a TSLA iron condor that I tried to close on expiration day but I couldn’t get the order to fill no matter what I did to the price. So I stupidly decided to let the whole thing expire since TSLA was trading within the brackets anyway and I would save the few dollars it should take to close out that position.
Except right at close, TSLA shot up and closed above my short call leg, and less than a minute later the market closed and everything else expired. I was left short 100 shares of TSLA at like $620 a share.
TSLA collapsed in after hours trading and Robinhood cancelled the transaction later that day. it continued to collapse over the weekend and if I had been able to hold on to that short position I would have made something like $3000 instead of the $80 I made on the Iron condor.
this was a couple of years ago, before the stock split.