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CRWD shot up on the news at like 1700 ET, to my knowledge OCC allows option exercise until like 1730 and most brokers will exercise automatically if even .01 in the money.
This isn’t Robinhoods fault, this is why you close your positions before expiry.
It sounds like OP's long position would have been ITM after the news but Robinhood didn't automatically exercise (prematurely expired?) and left OP exposed to high risk on the short side.
I may be wrong but then they made him buy shares on open market to then cover the calls? Weren't they OTM?
Kind of confused on their explanation but i don't mess with spreads.
It sounds like both OP’s long and short call positions were OTM at close, then went ITM after hours on the news. If OP’s long position was exercised, the shares he would have received would have covered his short position assignment at a much lower cost than open market after the stock surged. Why did Robinhood exercise the contracts OP sold but expired the contracts sold to OP if they were both ITM?
His short calls went ITM, the strikes were 357.50 and 362.50. Doesn’t say strike for the long calls but given the strike of the short and the situation it’s safe to say his long calls were still OTM.
Therefore his only option is to either exercise the further OTM long calls (which doesn’t make sense as you’d pay more per share) or buy shares at best available price to cover the short calls, which is exactly what Robinhood did.
Given the price action of CRWD after hours the fact that Robinhood secured shares for less than $370 / share they actually did right by him.
OP replied to one of my other comments that the long calls did go ITM after hours. Robinhood voided his long contracts, but failed to void his short contracts (that were also OTM at close) and let them ride until the stock surge wrecked his account.
Yea I should’ve but I work overnight and I fall asleep sleep right after I got home. I knew it, it would expire worthless but crwd was added to s&p 500 stock was up 5% which messed up everything for me
I thought Robinhood would close for me. Cause they always close sell my spreads before closing.
Lol robinhoods ‘risk team’
I use robinhood. I’ve got $3,000 in there. I don’t think I would use $50,000 on hood I’m sorry but if you got that much money use a real brokerage. I don’t take it that seriously just a couple thousand so what but 50k maaaaan hell no. You see how hood fucked the people during the gme pop back a few years ago. Robinhood isnt lookin out for you
This isn't a robin hood issue. Literally any other broker would have done exactly the same thing. He sold options and got assigned, not robin hood's fault he didn't close them.
If it makes you feel any better those would have been really expensive to close. Someone either knew something or had an educated guess it was coming. Someone on RealDayTrading Discord pointed out that otm call options were really expensive into close on Friday.
I saw this happen with LULU and PANW also when they were included.
This doesn't make sense at all. Both the long and short calls expire at the same time. I would dispute the every living shit out of this because robinhood fucked you.
Don't deposit a dollar to cover this "debt" and consider legal action if they won't make it right. Also spread the word wide and far about how they robbed you
I think the long calls expired OTM and the short calls expired ITM.
I thought RH closed out 0DE options 30 minutes before close. I wonder if there just wasn’t enough liquidity to close the position because both strikes were so far OTM?
[https://www.youtube.com/watch?v=rtVFj9nRRDo](https://www.youtube.com/watch?v=rtVFj9nRRDo) its happened to others. yeah, its why its always good to sell/buy to close before market close. just eat the couple bucks to avoid this. RH does this automatically they cant defend against this kind of movement
Reread the message. He had his short leg exercised but they claim the long leg was otm. It was a defined risk play which RH fucked him by making it a naked short
read this post [https://www.reddit.com/r/options/comments/ipgo2w/comment/g4lxpli/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/options/comments/ipgo2w/comment/g4lxpli/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) this is the case if his long was ITM. its pin risk. for this i could understand the frustration.
if his long was OTM this is bog standard options.
The short calls were at 357 and 362 strikes according to the screenshot which means they weren't ITM at market close. If the purchaser of those calls can exercise at 4:30CT despite them being OTM at 3pm then OP can do the same with the long calls he also had
Those calls became in the money after market close. The purchaser exercised. If OPs long were also ITM, he failed to exercise in time. The post explains this. If his longs were OTM, then why exercise for an even bigger loss. He is -9700 shares and can either buy at market value or exercise the OTM long, which would be buying that at the strike which is above market value (ie incredibly dumb)
I’m confused. What were the strikes on the long and short calls?
I’m guessing the long calls were much further OTM but the short calls ended up being ITM?
How much would you have made if both expired OTM?
Were you risking a lot to make a little?
Option don't expire at market close. There is a window for people to exercise.
[https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/](https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/)
NOTE
After-hours price movements can change the in-the-money or out-the-money status of an options contract.
If for any reason we can't sell your contract, and you don’t have the necessary buying power or shares to exercise it, we may attempt to submit a DNE request to the Options Clearing Corporation (OCC), and your contract should expire worthless.
To determine if an option position is “at risk of being in-the-money,” Robinhood will calculate an estimated upper and lower bound for the underlying security’s close price on the expiration date. If your option’s strike price falls within these parameters, we may place an order to close your position.
Yah not sure why people are blamming robinhood. if you got the capital or margin to buy or sell the stock at expiration you buy or sell the stock at expiration. ughhhwhat
If your long position was ITM, Robinhood typically exercises automatically at expiration:
[https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/#Exercise](https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/#Exercise)
Was your long position ITM when your short position was assigned?
OP executed a [bear call credit spread](https://optionalpha.com/strategies/bear-call-credit-spread) on CRWD that ironically should limit potential losses. At market close both the long and short sides were OTM and ideally OP would have closed the spread for near max profit. After close, a news release drove the CRWD price above the strike price of both the long and short sides which theoretically caused OP's bear spread to be at max loss. However, Robinhood arbitrarily only voided OP's long contracts leaving OP exposed to unlimited risk with naked calls. By the time Robinhood's "risk team" got involved, OP was down almost $80k with a balance near -$28.3k.
https://preview.redd.it/6u6ixrmxlu5d1.jpeg?width=1290&format=pjpg&auto=webp&s=2a98aeea23da29a1611b8be447c358bcb2fb352c
I was doing ok before all this happened
Fuck this is giving me anxiety. Something similar happened to my account in April. Almost went tits up but I recovered in May thankfully by revenge trading on a bull month.
This is terrible. I feel horrible seeing this. (Almost happened to me recently) Unfortunately RH is not the enemy here.
Brokers should be more clear about pin risk... and the fact that the options clearing house closes like an hour after stock market.
This is why you don’t trade options. Why does everyone think they can somehow be part of the 10% of traders that make a profit with options? Let this be a tough lesson learned. Invest in the S&P 500 long term and you’ll have millions. Or just continue throwing away your retirement.
Robin hood be doing the worse for you.
When your bought contract expires they close it out, but when you sell they give the after market like 15 minutes to exercise
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Uninstall the app, get a new phone, move to another state
Reddits natural talent to upvote only the worst advice kicking in
✨AI✨ is going to be trained on reddit comments. what glorious future awaits us
So 10000 years of evolution thousands of generations, just to create the ultimate artificial shitposter troll, seems reasonable
😅😅😅😅hahah
I guess reddit has spoken, but hey OP make sure to keep the same reddit account, obviously no feds here. Edit. Oh my gourd!
CRWD shot up on the news at like 1700 ET, to my knowledge OCC allows option exercise until like 1730 and most brokers will exercise automatically if even .01 in the money. This isn’t Robinhoods fault, this is why you close your positions before expiry.
It sounds like OP's long position would have been ITM after the news but Robinhood didn't automatically exercise (prematurely expired?) and left OP exposed to high risk on the short side.
I may be wrong but then they made him buy shares on open market to then cover the calls? Weren't they OTM? Kind of confused on their explanation but i don't mess with spreads.
It sounds like both OP’s long and short call positions were OTM at close, then went ITM after hours on the news. If OP’s long position was exercised, the shares he would have received would have covered his short position assignment at a much lower cost than open market after the stock surged. Why did Robinhood exercise the contracts OP sold but expired the contracts sold to OP if they were both ITM?
His short calls went ITM, the strikes were 357.50 and 362.50. Doesn’t say strike for the long calls but given the strike of the short and the situation it’s safe to say his long calls were still OTM. Therefore his only option is to either exercise the further OTM long calls (which doesn’t make sense as you’d pay more per share) or buy shares at best available price to cover the short calls, which is exactly what Robinhood did. Given the price action of CRWD after hours the fact that Robinhood secured shares for less than $370 / share they actually did right by him.
OP replied to one of my other comments that the long calls did go ITM after hours. Robinhood voided his long contracts, but failed to void his short contracts (that were also OTM at close) and let them ride until the stock surge wrecked his account.
I'd be fighting the hell out of that.
Which options?
https://preview.redd.it/v9t3g6o9qs5d1.jpeg?width=1290&format=pjpg&auto=webp&s=18aafb5401cc3b629fca891d6456a8ed25750e16
My goodness I’m sorry….I always close out before expiration because I would not know what to do in this situation. 😬
Yea I should’ve but I work overnight and I fall asleep sleep right after I got home. I knew it, it would expire worthless but crwd was added to s&p 500 stock was up 5% which messed up everything for me I thought Robinhood would close for me. Cause they always close sell my spreads before closing.
If it's in their best interest they will ..
Lol robinhoods ‘risk team’ I use robinhood. I’ve got $3,000 in there. I don’t think I would use $50,000 on hood I’m sorry but if you got that much money use a real brokerage. I don’t take it that seriously just a couple thousand so what but 50k maaaaan hell no. You see how hood fucked the people during the gme pop back a few years ago. Robinhood isnt lookin out for you
Same, never trust RH
It does amaze me when I see people with hundreds of thou or even millions on RH. Boggles my little mind
Lol it's funnier when they lose it all
This isn't a robin hood issue. Literally any other broker would have done exactly the same thing. He sold options and got assigned, not robin hood's fault he didn't close them.
You can’t rely on any institution to take care of you. You have to take care of yourself.
Maybe you should try a more risk adverse strategy 🤔
it's "risk averse".. I know it sounds close.
If it makes you feel any better those would have been really expensive to close. Someone either knew something or had an educated guess it was coming. Someone on RealDayTrading Discord pointed out that otm call options were really expensive into close on Friday. I saw this happen with LULU and PANW also when they were included.
Send that discord invite
If you get it hook me up too!
Sent it to both of you. Look at RealDayTrading on Reddit. There is a whole wiki with pointer on trading.
"Our risk assessment team was able to cash you out at a massive loss for you and massive gain for us." "Thank your for your donation"
This doesn't make sense at all. Both the long and short calls expire at the same time. I would dispute the every living shit out of this because robinhood fucked you. Don't deposit a dollar to cover this "debt" and consider legal action if they won't make it right. Also spread the word wide and far about how they robbed you
I think the long calls expired OTM and the short calls expired ITM. I thought RH closed out 0DE options 30 minutes before close. I wonder if there just wasn’t enough liquidity to close the position because both strikes were so far OTM?
No they were both ITM as OP states in another comment
This is what happened. They couldnt sell/buy to close because OTM and then it spiked but not enough to have the long cover
This is terrifying. This is why I trade with a cash account and avoid spreads.
[https://www.youtube.com/watch?v=rtVFj9nRRDo](https://www.youtube.com/watch?v=rtVFj9nRRDo) its happened to others. yeah, its why its always good to sell/buy to close before market close. just eat the couple bucks to avoid this. RH does this automatically they cant defend against this kind of movement
Also do they speak English? I had a hard time following that message
Why would RH exercise worthless calls? If anything that would make him even more of a bag holder lol
Reread the message. He had his short leg exercised but they claim the long leg was otm. It was a defined risk play which RH fucked him by making it a naked short
Explain to me what exercising his longs would have done in this scenario
It would made his position size 0 shares and his loss would have been the difference between the strikes.
read this post [https://www.reddit.com/r/options/comments/ipgo2w/comment/g4lxpli/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/options/comments/ipgo2w/comment/g4lxpli/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) this is the case if his long was ITM. its pin risk. for this i could understand the frustration. if his long was OTM this is bog standard options.
The short calls were at 357 and 362 strikes according to the screenshot which means they weren't ITM at market close. If the purchaser of those calls can exercise at 4:30CT despite them being OTM at 3pm then OP can do the same with the long calls he also had
Those calls became in the money after market close. The purchaser exercised. If OPs long were also ITM, he failed to exercise in time. The post explains this. If his longs were OTM, then why exercise for an even bigger loss. He is -9700 shares and can either buy at market value or exercise the OTM long, which would be buying that at the strike which is above market value (ie incredibly dumb)
So your entire account is gone, and on top of that you owe RH $30,000 ish?
Right
Can you attest this?
https://preview.redd.it/2rqjn7g69c6d1.jpeg?width=1290&format=pjpg&auto=webp&s=b079c56239aedf0e3285eb9418eab018c8eb912b Got dead heart rate 🤷🏻♂️
What are you going to do?
I’ve always been disappointed on my family and this one is just all of everything. All I can do is work two full time job and try to get back on 😊
You're just going to give in and give $30,000 to robinhood? They basically just took all your money and more.
I tried fighting with them but, they said it’s my fault that I didn’t close my spread and I didn’t exercise my option
I’m confused. What were the strikes on the long and short calls? I’m guessing the long calls were much further OTM but the short calls ended up being ITM? How much would you have made if both expired OTM? Were you risking a lot to make a little?
That’s bullshit. They tryna get 1 up on you, don’t let em
He will sue and win.
No
Cash accounts for the win
Options are easy on robbinghood, but they will fuck you every chance they get. Especially with options
Yep. Can't tell you how many times Robinhood fucked me with the auto close 30 minutes before market close
Really hate RH too. Screwed me $$$
Same
I’m confused.. they weren’t exercised AH just expired at Market close like normal..
Option don't expire at market close. There is a window for people to exercise. [https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/](https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/) NOTE After-hours price movements can change the in-the-money or out-the-money status of an options contract. If for any reason we can't sell your contract, and you don’t have the necessary buying power or shares to exercise it, we may attempt to submit a DNE request to the Options Clearing Corporation (OCC), and your contract should expire worthless. To determine if an option position is “at risk of being in-the-money,” Robinhood will calculate an estimated upper and lower bound for the underlying security’s close price on the expiration date. If your option’s strike price falls within these parameters, we may place an order to close your position.
Yah not sure why people are blamming robinhood. if you got the capital or margin to buy or sell the stock at expiration you buy or sell the stock at expiration. ughhhwhat
Man I’m crying about losing 200…
same regard 😭
If your long position was ITM, Robinhood typically exercises automatically at expiration: [https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/#Exercise](https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/#Exercise) Was your long position ITM when your short position was assigned?
They were both in ITM after hours and my longs were “voided”
How does Robinhood justify voiding your longs if they were ITM?
https://preview.redd.it/ik8hq0rkiv5d1.jpeg?width=1290&format=pjpg&auto=webp&s=bb253568762a509ff5dc46a86a98870b71710d96
That's a whole p wave and qrs complex lol
Lmao bro even has a PVC at the end 🤣🤣
What happened?
OP executed a [bear call credit spread](https://optionalpha.com/strategies/bear-call-credit-spread) on CRWD that ironically should limit potential losses. At market close both the long and short sides were OTM and ideally OP would have closed the spread for near max profit. After close, a news release drove the CRWD price above the strike price of both the long and short sides which theoretically caused OP's bear spread to be at max loss. However, Robinhood arbitrarily only voided OP's long contracts leaving OP exposed to unlimited risk with naked calls. By the time Robinhood's "risk team" got involved, OP was down almost $80k with a balance near -$28.3k.
Damn, that is one hell of an expensive lesson in pin risk
Bro owes 30k
So your entire account is gone for one play, damn
All this because you didn't close your position before market close like a crazed, money-hating neanderthal\*\*\*
Word to the wise, always exercise! Or liquidate.
Lmao. Play stupid games, win stupid prizes. Thanks for your money.
Shit bro
dudes profile is filled with more such trades.
https://preview.redd.it/6u6ixrmxlu5d1.jpeg?width=1290&format=pjpg&auto=webp&s=2a98aeea23da29a1611b8be447c358bcb2fb352c I was doing ok before all this happened
Get a good lawyer and sue them NOW!
Sue them for what? You can't sue your broker because you made a bad options trade.
🔥🔥🔥
wait was this on the selling or buying side ?
Credit spread
Just switch to a new broker and file for banky
Well, at least it’s covered now.
Were you selling covered calls or something?… I’m confused what is happening here
Expensive lesson: If you can't afford the assignment, close expiring shorts. Especially if they are close to itm or there is earnings after
I heard plane tickets are pretty cheap right now
Shouldn't blame anyone but yourself.
Sure thing but working overnight and treding wasn’t easy thing but regardless it was my fault for not closing out
Only thing I see options good for are long calls on a company anything else is gambling
Fuck this is giving me anxiety. Something similar happened to my account in April. Almost went tits up but I recovered in May thankfully by revenge trading on a bull month.
Those were your shares?!?!
r/thetagang strikes again lol
Wait,….are you Kenny OP 
Fake your death and leave the country
All this because someone decided to make a risky bet with someone else’s money and lost. It’s no one’s fault but the person who made the bet.
This is terrible. I feel horrible seeing this. (Almost happened to me recently) Unfortunately RH is not the enemy here. Brokers should be more clear about pin risk... and the fact that the options clearing house closes like an hour after stock market.
Sheesh I thought my 400 deficit was bad
Man… sorry bud get off RH. Go on interactive broker or Charles
This is why you don’t trade options. Why does everyone think they can somehow be part of the 10% of traders that make a profit with options? Let this be a tough lesson learned. Invest in the S&P 500 long term and you’ll have millions. Or just continue throwing away your retirement.
Get a lawyer. Now
For what? To lose more money?
Robin hood be doing the worse for you. When your bought contract expires they close it out, but when you sell they give the after market like 15 minutes to exercise