Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I just found out about a recent bug/glitch/exploit in Robinhood that some users (we will call them millennials) used to massively leverage up a small amount of money.
They would use Robinhood Gold, a account feature where for $5 a month you can buy 2x margin on your account balance. They would then buy stock using this 2x margin and sell really really in the money covered calls on this stock which would bring their cash balance to nearly double what they started with and the margin calculator would let them take 2x this amount (so 4x the original amount). They then repeated this until they had hundreds of thousands of dollars in margin (in one case over a million dollars) all based off of a small deposit of like $2000.
One guy used his exploited margin of $50,000 on his $2000 investment to buy Apple puts on Oct 31 that expired Nov 2 (right after earnings). Apple went up and his account instantly went negative $49,000 or something around there.
LOL
Ok, now the horrific part. I use this platform for my trading personal contest. WTH are they programming with? Monkeys?
Here is a youtube video of the guy who lost the $49,000 and now has a internet meme about the word GUH the moment it drops $50,000
They would use Robinhood Gold, a account feature where for $5 a month you can buy 2x margin on your account balance. They would then buy stock using this 2x margin and sell really really in the money covered calls on this stock which would bring their cash balance to nearly double what they started with and the margin calculator would let them take 2x this amount (so 4x the original amount). They then repeated this until they had hundreds of thousands of dollars in margin (in one case over a million dollars) all based off of a small deposit of like $2000.
One guy used his exploited margin of $50,000 on his $2000 investment to buy Apple puts on Oct 31 that expired Nov 2 (right after earnings). Apple went up and his account instantly went negative $49,000 or something around there.
LOL
Ok, now the horrific part. I use this platform for my trading personal contest. WTH are they programming with? Monkeys?
Here is a youtube video of the guy who lost the $49,000 and now has a internet meme about the word GUH the moment it drops $50,000